Posted on: 29-01-17 21:53:43
Hello experts ! I have a investment property (home) that used to be my primary residence for 4 years and then rented out starting Sep-2012. As per the CRA guidelines if I sell it in say Feb-2017 then I have to pay capital gain tax on (ACB at Sep-2012 (or assessed value at that time) - sale proceed)/2 x my marginal tax rate.
So, to save on the tax; probably I can keep the house for another 6 months or so under my name and sell it ! Of course this is a accountant question; OR if you have any expertise in that area. Any tips or idea ? Please update... Thanks!
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AK
Did you at any time change the Mortgage Holder, the Bank/Institution and if so, did they want an appraisal of the property at that time. Do you have the value or the documents that the Bank was given. Some of these valuations will provide you with additional break in the Capital gains value. Cost may be about 250 bucks.
You have correctly pointed out that you retain the Capital gains till the end of your occupation period as the owner. Year 2012. Assessed Value, if you did get it done.
You will have to do the math now from 2012 to the date of selling and calculate the gains. Half you keep. The other half you include in your income and pay a rate of tax you will enter into. Generally one bracket higher. (If higher, you won big time)
Hope this helps.
FH.
If it is not sold and if there are delays, then a month or two may be beneficial to you too.
Also see if you have moved a long distance and qualified for the moving expenses.
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Quote:
Originally posted by neerupam
Hello experts ! I have a investment property (home) that used to be my primary residence for 4 years and then rented out starting Sep-2012. As per the CRA guidelines if I sell it in say Feb-2017 then I have to pay capital gain tax on (ACB at Sep-2012 (or assessed value at that time) - sale proceed)/2 x my marginal tax rate.
So, to save on the tax; probably I can keep the house for another 6 months or so under my name and sell it ! Of course this is a accountant question; OR if you have any expertise in that area. Any tips or idea ? Please update... Thanks!
