My tax accountant keeps telling me every year that it is a nice problem to have.... Also, cap gain tax is still better than ordinary income tax. Ok, no more geek talk.
GTED
Wild Pricing
- Thread starter bmoullet
- Start date
My tax accountant keeps telling me every year that it is a nice problem to have.... Also, cap gain tax is still better than ordinary income tax. Ok, no more geek talk.
GTED
RPM217
2005 white/blue stripe
As I tell my clients every year, "nobody ever went broke, taking profits and paying capital gains taxes". I also tell them that my goal is to each year, make them pay more in gains taxes. Nobody has complained about that!!!
FBA
GT Owner
Here in Canada, while we pay ungodly personal tax rates (up to 50+%), personal cars are NOT subject to anything except sales tax on purchase; that's all. Capital gains here apply to sale of secondary residences, gains on some types of investments, sale of a business, investment property etc...
Xcentric
GT Owner
Jeez...cap gains tax is a bargain. If you're getting hammered on cap gains, huge congrats on your increased net worth. More first world problems.
RADGT
GT Owner
The peoples republic of Connecticut taxes cars at the same mill rate as your house, every year. Assessed value/1000 x 70% x mill rate = holy crap
Come to Florida baby! No income tax and cars only taxed sales tax at purchase.
On top of that, property tax does not increase over the years for ones primary residence.
KennethClay
GT Owner
Well, if you want to feel a little better, it's still a LOT lower than Westchester County taxes. Ugh!
HIRISC
GT Owner
Yes..going to be walking funny for awhile.
In addition to the numerous Federal increases, er redistributions, MN blessed us with a 2% PI increase on the top - now 9.85%.
Xcentric
GT Owner
Northern Virginia counties are similar. Fairfax County personal property tax (cars, boats, RVs, etc.) is 3.59% of assessed value every year. My GT was assessed at $165K in 2012. The assessment increased to $185K in 2013, shortly before I moved from there to Florida.
zach05855
GT Owner
twobjshelbys
GT Owner
Taxes in Nevada were one of the influencers of relocating here. Sales tax is 8.1% at the local home depot, property taxes seem reasonable - our new place is about 2K / year, and no state income tax. I think the tags on my cars will be similar to Colorado although I think the GT will be cheaper.
FBA
GT Owner
Actually, my plan is to move to Florida within 5 years. I'm moving one of my companies to Alberta shortly, but the other ones can't be moved, just because of the type of businesses they are. The corporate tax rate out in AB is only about 1.5% less than the rate here in Quebec. Personal tax may be lower and I would love to take advantage of it, but if I'm going to make a move, Canada is just a lateral move to me, simply because taxes are high and I can't stand the cold/ snow anymore. I'm 56 and I want heat all year 'round, and I want to drive my cars / bikes all year 'round too!
I see you came out of Sherbrooke...when did you move out to AB?
zach05855
GT Owner
I moved late last year. Before you get your heart set on Florida. Canada will impose a departure tax on you when you leave the country permanently. The tax will be 25% of the market value of all your assets on the day you leave. All your assets includes everything you own, including cars , clothes , furniture, real estate, stocks and bonds , The market value of your company... the only thing that is not taxed will be cash and your RRSP.
I am 53 and have gone through the process and hired two different firms to try to find a tax strategy that would work to the states. The best plan was move to Alberta, and then you can spend up to 180 days per year in the USA without any tax issues in Canadian or the US.
My advice is to talk to a specialist who understands the implications of a move to the USA.
FBA
GT Owner
Actually, the departure tax thing is somewhat misunderstood by many, from my understanding anyway.
This is how it has been explained to me by the tax specialists at our accounting firms:
In my case, I would dispose of all my assets / business etc...and convert to cash.
Taxes get paid as if I had done just that, and stayed here. Things that are not taxable while living here don't get taxed if I decide to sell and move. Capital gains/ losses are the same on assets whether you liquidate, or decide to keep them in the event that you leave. Cars, personal possessions, etc...things that are not taxable while living here, are also not taxable when sold and moving away. In my case, better to dispose of all assets, pay the taxes and go.
I have a few friends who have made the move - they all tell me the same thing as my accountants.
In any case, I've had enough of this province, especially after this last idiot, Nazi premier in Quebec, and I have had enough of this country, the lousy medical care and 50% personal tax rate. I feel the warmth beckoning! LOL
This is how it has been explained to me by the tax specialists at our accounting firms:
In my case, I would dispose of all my assets / business etc...and convert to cash.
Taxes get paid as if I had done just that, and stayed here. Things that are not taxable while living here don't get taxed if I decide to sell and move. Capital gains/ losses are the same on assets whether you liquidate, or decide to keep them in the event that you leave. Cars, personal possessions, etc...things that are not taxable while living here, are also not taxable when sold and moving away. In my case, better to dispose of all assets, pay the taxes and go.
I have a few friends who have made the move - they all tell me the same thing as my accountants.
In any case, I've had enough of this province, especially after this last idiot, Nazi premier in Quebec, and I have had enough of this country, the lousy medical care and 50% personal tax rate. I feel the warmth beckoning! LOL
maxemus
GT Owner
I'm a Floridian from birth and wouldn't live anywhere else but holy crap out property taxes are outrageous. So beware the taxman!
BlackICE
GT Owner
Doesn't seem any worst than CA, and in CA we also have the highest income taxes!
http://www.tax-rates.org/florida/miami-dade_county_property_tax
Howard
GT Owner
The great thing about (formerly) living in New Jersey is that real estate taxes everywhere else seem downright reasonable. Presently living in Florida, and it's like living for free. Taxes are 25% of Jersey real estate and no income tax. Come on down; we need more Sarasota area FGT's.
Hiward
Hiward
Xcentric
GT Owner
We have lots of Canadians who made the permanent move down here, eh? That's why we have a slightly higher level of politeness. However, they drive so sloooooooow.
Anyway, no shortage of advice available. Let me know if you'd like to establish a trust in my name.
Anyway, no shortage of advice available. Let me know if you'd like to establish a trust in my name.