Current Newsletter

 Many of us do not have a clear history of what the assets (houses, cottages, investments) we own cost. What happens when we decide to sell these assets, or we die and the assets are suddenly deemed sold?

 This has become a reality for individuals, most commonly once they have died, but also for people selling assets. Think about these scenarios:

 1. You buy a rental property twenty years ago and in the first couple of years you replace a roof and furnace. You choose not to expense these items – which is a reasonable decision. Then twenty years later you sell the property. The cost of the roof and furnace should be added to the cost of the property to reduce your capital gain. Do you have the receipt to prove the cost? Keeping records can save on taxes in the future. Take time to tuck records somewhere safe.

 2. You die with many investments. Your son and/or daughter are the executor of your estate. Does your investment advisor have the records on the cost of your investments, or if you have managed them yourself have you left a clear record of the cost. For investments that you may have owned for a long time, the capital gains may be quite large. Without clear documents showing the cost of these investments, the result may be excess capital gains or additional cost and time to determine the cost. A few moments spent to keep records up to date could save you and your family time and money.

 A little work today will save real tax dollars in the near or distant future. If you would like assistance with getting your information complete contact RLB.