Crown Land Occupational Authority
Occupational authority is a legal agreement between the Crown, represented by the Ministry of Northern Development, Mines, Natural Resources and Forestry, and the tenant. It outlines:
- who can use the land
- for how long
- what the rents and/or fees are
- any associated conditions
When you use Crown land, including carrying out commercial activities, you may need occupational authority to use that land. You may be required to get occupational authority for Crown land if:
- you are placing structures on it
- the land is to be used for commercial or industrial purposes
- you need exclusive use
The Truth About Eminent Domain
Eminent domain actually dates back to the founding of our country. For the most part, “public use” has been defined as building roads, schools, bridges, and public structures. In the 1950s, definitions of eminent domain expanded. Courts began to approve the transfer of private property to public use in the name of “slum clearance.” In short, economic redevelopment became a justification for eminent domain.
Ah, the American dream. Work hard and you, too, can save to buy a house in a nice neighborhood, raise your family, and then be kicked out by Uncle Sam. Wait. What’s that last part? If Uncle Sam could get more tax revenue from upscale condominiums, luxury hotels, and high-end office buildings, you might just find yourself out of a home. Don’t worry. You will be compensated.
As cities seek to increase tax bases and create jobs, one increasingly popular solution is to take advantage of eminent domain. So, what is eminent domain? Basically, the government can force the sale of private property in the name of public use. For example, if your house is next to a freeway that’s scheduled for widening, the government can force you to sell so long as you are paid fairly. The government can also declare an area blighted and initiate eminent domain procedures.
For decades, state courts have decided what “public use” encompasses, and soon our highest court may decide whether or not to weigh in.
About the Author
Michelle Kaminsky, Esq.
Get More Help With Procurement
Important: Please direct any questions about a specific tender opportunity to the contracting authority identified in the tender solicitation documents. Consult the following for additional information:
- Call the Public Services and Procurement Canada procurement Infoline at 1-800-811-1148, Monday to Friday, 7:30 am to 5 pm Eastern Time, to get quick help to sell to the Government of Canada
- Visit our contacts for procurement page to connect with the right people to provide you with answers to your questions, information about free seminars and support for general procurement questions
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What Is Capital Gains Tax
Capital gains tax is a tax you pay to the government when you make a profit by selling your investment property for more than you originally paid for it. For example, if you spent $310,000 on buying a house years ago and sold it for $500,000 today, then your capital gains would be $190,000, and youd have to declare this amount along with your other income on your tax return. Well discuss how much of your profit is taxed and how that is calculated below.
There are ways to minimize your tax bill, however, and you may even be exempt from paying tax altogether if the property you sold was your primary home.
Does capital gains tax apply only to real estate?
No. The CRA can charge capital gains tax on anything you sell that makes a profit including stocks, bonds, real estate investments and other assets .
If You Don’t Use The Property Post
Lets say that you sell your $200,000 home to your child for $1 and you no longer use or occupy the property. The remaining $199,999 doesn’t escape federal taxation because the IRS treats the $199,999 uncompensated value as a gift.
The tax code provides for a $16,000 gift tax annual exclusion as of 2022 , per person per year, so that $199,999 gift is reduced to $183,999. You don’t have to pay the tax on the first $16,000, but now you have a choice to make.
You can pay the gift tax on that amount in the year you make the gift, or you can apply that $183,999 to your lifetime exemption. This exemption is $12.06 million as of 2022, up from $11.7 million in 2021. You can give that much away one way or anotherduring your lifetime or from your estate after your deathwithout incurring either a gift or an estate tax.
The annual exclusion and the lifetime exemption are both indexed for inflation, so they can increase somewhat from year to year. But the annual exclusion can only increase in $1,000 increments, and this doesn’t necessarily happen annually.
Twelve-plus million is a lot of exemption, but here’s where it gets tricky. This lifetime exemption covers both the gift tax and the estate tax. So assuming you decide to kick that $183,999 over to your lifetime exemption, you now have only $11,876,001 left of the $12.06 million exemption to shield your estate from taxation when you die.
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How Are Capital Gains Calculated How Are They Taxed
Before we dive into the tax part, lets go through how to calculate capital gains on the sale of a property. Essentially, this calculation figures out how much the propertys value grew from when you first bought it to the day you sold it.
CAPITAL GAIN = PURCHASE PRICE SELLING PRICE
This above is a simple-math calculation of the capital gain. But, also can dive even deeper to reduce the amount of capital gains you would claim on your tax return .
So, its not that capital gains are taxed at a rate of 50%, butits that 50% of the capital gains are taxable. And the capital gains tax rate depends on the amount of your income. You add the capital gain to your income for the year, including money you receive from your job, side hustles, dividends in non-registered accounts, any selling of assets and so on.
Capital gains are taxed as part of your income on your personal tax return. Below are the federal tax brackets for 2022, which can give you an idea of how much tax you may owe for the year. You will need to figure out the provincial tax bracket rate for your province or territory, too. Since Canada has a tiered tax system, you will have to do a bit of math to estimate your annual income tax, breaking down your total tax into the brackets, and the amount owed for each bracket.
And, of course, to really get down to the nickel of how much you ultimately owe, you will need to do your tax return and receive a notice of assessment.
Use Online Listings Targeted To Lot & Land Buyers
Its probably obvious that you market a home to homebuyers. It follows that you should market your lot or land directly to lot and land buyers.
Online listings are an important part of any real estate marketing plan, and you should make use of all the available tools. When you market your property online you want to target people who are looking for lots and land.
MLS usually is a first step for real estate agents when they get a new home listing, and it certainly should be part of any real estate marketing plan. But you should keep in mind that MLS is focused on marketing existing built homes, and should not be the only online marketing tool used for your lot or land listings. LotNetwork.com was specifically designed for selling residential lots and land, and attracts targeted lot and land buyers like potential homeowners, builders, developers and investors, among others.
Your understanding of your buyers and the market comes into play when you are preparing your listing. Craft your message in your listing to provide the information that your likely buyers need.
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Sell To Other Canadian And Foreign Governments
We have recently begun sharing our procurement tools, such as standing offers and supply arrangements, with Canadian provinces, territories and municipalities to help provide best value for Canadian taxpayers. If you are pre-qualified for one these tools, you can find opportunities to sell to other governments in Canada.
Find more information to sell to other Canadian and foreign governments.
The Land Market: Why Its Different To Sell Lots And Land
Many people expect the market dynamics for lots and land to be the same as the market for existing homes. They are not. Youll be better prepared to sell your home lot or land if you understand some of the differences between the land market and the existing homes market.
What are the important things you should know when you want to sell land?
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Can The Government Really Take My Property
Generally, yes the government can take your property as long as two general requirements are met:
In very limited circumstances, there may be a basis to challenge whether the proposed taking is for a public purpose. These situations, however, are uncommon. You should also be aware that some nongovernmental entities such as public utilities and pipeline companies also have condemnation powers in most states. As a result, even private entities can sometimes take your property if they have met all of the specific legal requirements to do so.
Who Can Buy Public Land
According to the BLM purchasers of public land must be:
- United States citizens 18 years of age or older
- corporations subject to the laws of the United States or of any state
- a U.S. state, state organization, or state political subdivision authorized to hold title or property or
- entities capable of conveying and holding lands or interests therein under state law.
Some federal employees are prohibited from buying public land and all buyers are required to submit a Certificate of Eligibility and may be required to submit articles of incorporation or other documentation.
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When To Hire An Attorney
If you’re facing an imminent tax sale, or one has already occurred, consider talking to an experienced attorney in your state as soon as possible. A qualified foreclosure lawyer, tax lawyer, or real estate lawyer can answer your questions about how the process works where you live and the specific steps you need to take to save your home from a tax sale.
How Does The Trial Work
The procedure for condemnation trials varies by state. In some states, such as Colorado and Minnesota, valuation trials are typically held before a group of commissioners. Many states, such as Illinois, allow for one or both parties to elect to have the trial held before the court rather than a panel of commissioners. You may also have the right to ask a jury to decide how much just compensation is to be paid for your property.
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Plan To Sell Unused Federal Property Becomes Arm
A little-known independent board created to expedite the disposal of unused land and buildings has been hampered by a lawsuit, staff shortages and pushback from other agencies.
The Public Buildings Reform Board was created to help the federal government sell unused properties, like the former Nike missile site in Gaithersburg, Md.Credit…Ting Shen for The New York Times
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The plan sounded simple enough.
The federal government has long owned more real estate than it knows what to do with buildings that sit empty and sites that are underdeveloped but it must jump through hoops before it can sell its holdings. So surplus properties languish while taxpayers foot the bill for maintenance.
The solution, springing from legislation passed in 2016, was an independent agency that would quickly identify underused properties and expedite their disposal.
But nothing has been simple about the Public Buildings Reform Board, as the little-known agency is called.
And so far, only a single property that the board has recommended for sale has actually been sold.
Its taken a lot more effort to get rid of this stuff than the reformers had hoped, said Demian Brady, vice president for research at the National Taxpayers Union Foundation, a lobbying group.
The board has until 2025 to make its mark.
Register To Become A Supplier
To register you need a business number from Canada Revenue Agency. You can then register in the Supplier Registration Information system to get a procurement business number. This will be your unique identifier to sell to the federal government.
Note: If you are an Aboriginal business you also want to be included in the Aboriginal Business Directory.
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Getting A Land Mortgage
As mentioned earlier, experts often recommending purchasing land with cash. But if you dont have enough savings to purchase the piece of land outright, you can get whats called a land loan.
The kind of land loan youll need will depend on the type of land youre interested in buying. Theres financing available for raw land as well as improved land that has already seen some development .
Raw land loans can be challenging to obtain. Developing raw land is expensive and difficult, so raw land loans are considered to be riskier than loans for improved land. Youll often find these loans classified as commercial property loans. If you need one, you might have to make as much as a 50% down payment. Still, there are some lenders who let buyers put just 20% down.
Anyone who needs a raw land mortgage should be prepared to pay a high interest rate. In addition to looking at your credit and your background, your lender might want to see details about what you intend to do with the land. Your chances of getting approved for an improved property loan are significantly higher.
If you cant obtain a land loan from a bank or other lender, you can see whether the owner of the land will offer you financial assistance. Or you can try to apply for a Section 502 direct loan, part of a program administered by the Department of Agriculture. It gives low-income individuals the option of buying land in a rural area and using it to build a house.
Why Are Land Contracts Used
As with other types of seller financing, a land contract may be advantageous to both buyer and seller.
Benefits to buyers. There may be a buyer interested in the real estate for sale but who, because of their credit history or other reasons, cannot obtain approval for a needed mortgage. The parties can enter into a sale by land contract so that the buyer makes monthly payments directly to the seller.
Benefits to sellers. The seller does not receive the full purchase price up front, like the seller would if the buyer used a mortgage or paid all cash, but the seller may have more options for potential buyers. Also, the seller may be able to negotiate a higher purchase price on the property by offering a sale by land contract. The seller may also require and receive a large cash down payment.
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How Can You Get The Lien Removed
If CRA has already placed a lien on your home or other assets, you have three choices to remove the lien.
- First, you can negotiate repayment arrangements with CRA. Once the debt is repaid, they will remove the lien.
- Second, you can sell the house. After the mortgage is paid, the remaining funds will go towards the lien.
- Third, you could file a consumer proposal. Since the lien is secured by the house, the proposal must contain a specific term stating that the tax lien will be removed by CRA upon the completion of the proposal, and CRA must agree to the proposal. In practice, this may be difficult depending on the amount of money involved.
Unfortunately, filing bankruptcy will not remove the lien, just as filing bankruptcy in Ontario does not remove a mortgage on a house.
There are many issues to consider when dealing with Canada Revenue Agency and tax liens, so if you owe money to CRA, please contact us to review your situation and develop a plan to deal with these debts.
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There Is No ‘free’ Government Land
Public lands are sold at not less than fair market value as determined by a federal appraisal. Considerations such as legal and physical access, the highest and best use of the property, comparable sales in the area, and the availability of water all affect the land value. There are no “free” lands.By law, BLM must have the property to be sold appraised by a qualified appraiser to determine the current market value of the property. The appraisal must then be reviewed and approved by the Department of Interior’s Appraisal Services Directorate. The minimum acceptable bid amount for a parcel of land will be established by the Federal appraisal.
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Find Publicly Tendered Opportunities
Most opportunities are published on the tendering service. Learn about the different types of tender notices used to solicit bids or information:
- Request for proposal:
- Used to pre-qualify suppliers to provide goods and services when required, at firm prices
- Request for supply arrangement:
- Used to pre-qualified suppliers to provide goods and services when required, at prices that are not fixed