Posted on: 08-03-07 14:05:01
So i just have to declare the gain but will not be charged any Capital gains tax that is good news .
Quote:
Originally posted by chandresh
Quote:
Originally posted by Loser
If i sold my house and went abroad to work what will be my liability for Capital gains tax and how can i reduce it. I bought my house for 225,000 $ and will sell it for approximately 450,000 $ .
As far as I know - and I could be wrong - if this house is your principal residence, you will not be liable for tax on capital gains out of selling your house.
Chandresh
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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership
This might be a good link for you:
http://forums.canadianbusiness.com/thread.jspa?messageID=170930" target="_blank">http://forums.canadianbusiness.com/thread.jspa?messageID=170930
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by Loser
So i just have to declare the gain but will not be charged any Capital gains tax that is good news .
and read this too: (from CCRA website)
Disposing of your principal residence
When you sell your home or when you are considered to have sold it, usually you do not have to report the sale on your return and you do not have to pay tax on any gain from the sale. This is the case if the home was your principal residence for every year you owned it.
If your home was not your principal residence for every year that you owned it, you have to report the part of the capital gain on the property that relates to the years for which you did not designate the property as your principal residence. To do this, complete Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust). If you are the legal representative for a deceased person, you can designate a property using the form T1255.
Note
Because your home is considered personal-use property, if you have a loss at the time you sell or are considered to have sold your home, you are not allowed to claim the loss.
If only a part of your home qualifies as your principal residence and you used the other part to earn or produce income, you have to split the selling price and the adjusted cost base between the part you used for your principal residence and the part you used for other purposes (for example, rental or business). You can do this by using square metres or the number of rooms, as long as the split is reasonable.
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Chandresh
Advice is free – lessons I charge for!!
What if I make a loss on the principal residence?
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Chandresh,
You are right. I did get Sec 116 approval for my clients who no longer lived in their home in Canada and the home was used as a rental property in Canada for almost 2 years before it was sold.
The situation may not apply in case of Loser. That's why I asked him to check with a qualified accountant.
Thanks,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
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