You must use the exchange rate on the date you came to convert INR into Canadian dollars when calculating the cost basis. Furthermore, you may benefit from claiming principal residence exemption on the property. Hi, Is there any downsides to selling the property at a discounted rate? Purchased at 125k. However, when you converted the condo to a rental property in 2008, your accountant should have obtained this information from you to report on the rental statement in the tax return. I was doing research on capital gains and how they will affect me. Can I claim a loss on my income tax return if I lost money on the sale of my home? If they were used for personal use, the interest is not deductible. I own a duplex, and live in one part of it and rent the other. Why have i read that the govt wants to hold 50% of the gross sale price? Your situation likely falls under the first category of sales of previously occupied residential complexes, and as such would be exempt from GST/HST. Having General Liability Insurance will protect you from lawsuits involving injuries or damages to customers, employees, vendors or visitors that occur on the premises of your property. Who is right? The net sales proceeds are the selling price and the cost is the original purchase price. Hi Nikki, you can subtract the amount you paid for the renovations from the gain. A limited partnership is a separate legal entity where investors own units representing their ownership interest in the partnership. For enquiries, contact us. My question is the following: Does the estate deduct the real estate commissions, legal, other selling costs to arrive at the net proceeds of disposition reported on the tax return when arriving at the taxable capital gain if it was sold on the MLS I am thinking of selling my home, and moving into the cottage permanently. Usually, interest paid on money borrowed for investing in the stock market is tax deductible, even though some of the stocks have a limited potential to earn dividend income. How do I claim these expenses? And if you don’t want to support him, then just let him rent. Is there an instant renewal or are you paid off? In that time we both took on new jobs in another town and had to move. Please visit us again. Unless you make it your primary residence, you will likely face capital gains taxes. According to the CRA, profit on assets and investments are taxed in a variety of ways. Now, all property sales must be reported. I know she talked about it, but is there any way to check if she elected to use the $100,000 Capital gains exemption before it was eliminated? Also make sure you can transfer money in and out with ease. We are considering carrying the mortgage as well. ( I have received a $15000 down payment and monthly payments are $800) My 2 questions are Hi Allan, Originally, it was worth around $20,000. In 2015 I moved out, and In 2016 I brought a house with my husband. If the property was solely your principal residence for every year you owned it, you do not have to pay tax on the gain. This is because you will need to calculate the RDTOH balance, CDA balance, taxable capital gain, all of which are difficult to do. Instead, each partner is personally liable for taxes on his /her share of the partnership’s income. I am looking for some basic help with Schedule 3. Hi Stan, 185,000 principal left. Only half of the capital gain is taxable, which is $5,000 in this case. You cannot shelter the profits by paying capital gains tax. This means that you, the sole proprietor, will be listed as the sole owner of the property on the deed of purchase. Since you made extensive renovations soon after you purchased the home, and shortly thereafter are in the process of selling it, the profit realized on the sale will be treated as business income. This is because you changed the use of the show home from a rental property to a principal residence. Hi Chris. You should open a separate bank account for all of your real estate investment business transactions. myself what kind of spam security you might be working with . He hasn’t filed any paperwork here in Canada or had 25% of his ownership interest held-back or filed since the property was registered 2 years ago. ” The due date for filing a Canadian personal tax return for the 2015 year in April 30, 2016. Do not claim the renovations as ‘expenses’ on your 2013 return. In this case, your company can expect to pay $22,500 in taxes. If you had two houses in a year and you lived in them both throughout the year, then you can only claim one house as a principal residence for that year.