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Financing, Mortgages and Insurance What options are best for you and your situation?

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Old 2011-03-12, 12:56 PM
jane22 jane22 is offline
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Default Delayed Closing reimbursement tax exempt?

I received notice my home will not be ready by its original firm closing date and I have received a new extended closing date.

I believe I will be entitled to apply for delayed closing reimbursement through Tarion once I close, if I receive payment will I need to claim it on my taxes? Will I have to pay tax if I do need to claim it?

Thanks for any advice you can offer.
Original closing date Oct 7th, 2010
New Firm closing date June 6th, 2011
Extended closing date Feb 6th, 2012
Delayed beyond Extended closing to April 12 2012.

Finally within reach!

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Old 2011-03-12, 09:16 PM
Mark & Lynda Mark & Lynda is offline
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I believe any income you receive would be taxable under CRA rules. There are only a few examples of income that is not taxable which can be found on the CRA website.
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Old 2011-03-12, 09:18 PM
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GregS GregS is offline
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..and your accountant and lawyer would be better suited to answer this question with authority.
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Old 2011-03-12, 10:42 PM
shooter shooter is offline
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I received delay closing compensation for my house which closed in 2010. I am currently completing my tax return and have been told this is not taxable as it is not considered income, rather a refund of a portion of the purchase price. This makes sense to me but I am curious if you (or anyone else) are told otherwise.
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Old 2011-03-12, 11:02 PM
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BrianT BrianT is offline
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I'm no expert but I think if you don't get a T4A for this compensation then you don't need to claim it on your taxes.
Builder: Tamarack Homes
Location: Chaperal (Orleans)
House: Avon 4E
Moved In: April 10th 2010
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Old 2011-03-13, 05:40 AM
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good2know good2know is offline
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this is compensation for out of pocket expenses - no tax implications
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closing, delayed, reimbursement, tarion

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