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  Canada Immigration Forum > About Canada > Real Estate & Mortgages > Question regarding Capital gain Tax on new construction Condo.
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Question regarding Capital gain Tax on new construction Condo.




Hello all,

In our existing house, we are four people on the title (Me, wife and parents). Me and wife have 40% each and parents have 10% each share on the current property. My dad purchased brand new construction condo and now condo is ready to move in. Condo is completely 100% solely on my father's name.

Can he consider this condo as his primary resident home? If he sale the condo then is it any capital gain taxes he need to pay? At present, they are living with me on the same house. If he rented it out and not deciding to live in the condo then still can he consider as a primary resident home when later on if he sale the condo?

Any input would be highly appreciated.

Thank you


 
KING # 1


Member since: Jul 08
Posts: 24
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Post ID: 239322 14-12-20 13:48:47
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Full House

Member since: Oct 12




Posts: 2673
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Only a Lawyer will be your best bet.

There are two scenarios and they both need to be met before you will be clear off the Capital gains. In both the cases you will need a lawyer. so, please see him and he will help you all four.

Good luck.

FH.


---
Quote:
Originally posted by KING # 1

Hello all,

In our existing house, we are four people on the title (Me, wife and parents). Me and wife have 40% each and parents have 10% each share on the current property. My dad purchased brand new construction condo and now condo is ready to move in. Condo is completely 100% solely on my father's name.

Can he consider this condo as his primary resident home? If he sale the condo then is it any capital gain taxes he need to pay? At present, they are living with me on the same house. If he rented it out and not deciding to live in the condo then still can he consider as a primary resident home when later on if he sale the condo?

Any input would be highly appreciated.

Thank you





 
Post ID: 239331 15-01-21 03:13:48
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chandresh

Member since: Mar 03




Posts: 2606
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If your father sells the unit now, not only will he have to pay the capital gains tax if there is any gain, but also pay the HST rebate that must have been included in the purchase price.

HST rebate of 8% is normally built into the price that builders sell the unit for, but that rebate is normally given for owners who live there. However, it is a slightly complex issue and I would advise you to go thru this explanation:

http://www.starioncondos.com/hst-hst-rebate-on-pre-construction-buying-investing/

If he rents it out and not live there - think why would it be considered primary residence? Owning a property does not automatically make it primary residence. It is a different thing if you are able to get a family friend rent the unit without lease agreement and rent paid in cash.

-----------------------------------------------------------------
Chandresh

Advice is free lessons I charge for!!

 
Post ID: 239337 05-02-21 10:11:14
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KING # 1

Member since: Jul 08




Posts: 24
Location:


Quote:
Originally posted by chandresh

If your father sells the unit now, not only will he have to pay the capital gains tax if there is any gain, but also pay the HST rebate that must have been included in the purchase price.

HST rebate of 8% is normally built into the price that builders sell the unit for, but that rebate is normally given for owners who live there. However, it is a slightly complex issue and I would advise you to go thru this explanation:

http://www.starioncondos.com/hst-hst-rebate-on-pre-construction-buying-investing/

If he rents it out and not live there - think why would it be considered primary residence? Owning a property does not automatically make it primary residence. It is a different thing if you are able to get a family friend rent the unit without lease agreement and rent paid in cash.



Thank you Chandresh Ji for input and information.


 
Post ID: 239338 05-02-21 10:27:17
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