Cottage owners race to sell ahead of capital gains tax changes and the Home of the Week: Canadian real estate news for April 27

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Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Montreal tenant forced to pay his landlord’s taxes offers advice to other renters

Montrealer David Siscoe was audited in 2018 and ordered to pay six years’ of withholding taxes, after the Canada Revenue Agency said he was liable for the back taxes because they were unable to collect from his non-resident landlord, writes Kerry Gold. The 61-year-old former Olympian was able to get a reduction in the number of years, and says he now owes around $43,000 to the CRA. To prevent falling into Mr. Siscoe’s situation, real estate experts suggests a system whereby CRA is notified of any non-tax-resident real estate purchases. At that point, CRA would send the purchaser notice of tax obligations and issue an individual tax number if they don’t qualify for a social insurance number.

Developer Sam Mizrahi files lawsuit against Edward Rogers and his real estate fund, alleges $30-million loss

In a lawsuit filed this month in Ontario Superior Court, real estate developer Sam Mizrahi alleges Edward Rogers and his business partner Robert Hiscox – who co-own real estate fund Constantine Enterprises Inc. – blocked multiple attempts made by Mr. Mizrahi to salvage more value from the two real estate ventures they were jointly developing, writes Tim Kiladze. Mr. Mizrahi is suing Constantine and its two owners for breach of contract and negligence, among other allegations, and is seeking $100-million in damages. Mr. Hiscox disputed this narrative, and said Mr. Mizrahi exceeded the original timeline and budget of the project.

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Cottage owners rush to sell ahead of capital gains tax changes, realtors say

Last week’s federal budget includes raising the inclusion rate on capital gains greater than $250,000 to 66.7 per cent from 50 per cent. That means if an individual sells a second property – such as a cottage – after the new rules kick in, they would pay tax on a higher portion of the capital gains. This has cottage owners looking to sell scrambling to close deals before the changes take effect on June 25, writes Jenna Legge. The announced tax change is prompting sellers to change strategies, with some opting to lower their asking prices in a bid to close a sale before the rule changes, but real estate experts recommend not rushing into a deal.

Rob Carrick: Empty your TFSA to pay off a mortgage?

High mortgage rates have temporarily settled one of the longest-running debates in personal finance: invest or pay off your mortgage, writes personal finance columnist Rob Carrick. You might be able to consistently earn on your investments, but markets can be volatile. Paying down a mortgage is a guaranteed result. Today’s mortgage rates are on par with the average returns on a balanced portfolio, and TFSA withdrawals are tax-free, so every dollar can be used against the mortgage. And money withdrawn from a TFSA can always be replaced.

Home of the week: In Toronto, a lakeside retreat feels like ‘Muskoka in the city’

90 Meadowcliffe Dr., Toronto

Toronto is a city of skyscrapers, subways and stadiums, but there are a few spots that still feel like they were transplanted from a hidden lakeside hours away from downtown. The three-bedroom home sits near Toronto’s eastern lakeside, and its features slowly reveal themselves as you approach on the long driveway. The contemporary foyer opens to the kitchen on the left – which features an eat-in area overlooking the waterfall – and to a cedar-lined hallway on the right leading to living spaces and stairs to the lower level. A recent extension added two new indoor-outdoor spaces, including an all-glass room that can be used for an office.