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capital gains tax clarification ..

capital gains tax clarification ..

Old Aug 4th 2011, 9:51 am
  #1  
Location:West Van, BC
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Thumbs up capital gains tax clarification ..

we have been resident in Canada for last 3 1/2 years ... bought house as only residence late last september 2010 and just sold this august ... sale completes mid september so haven't quite owned for a year ... will be leaving Canada 1 week after house completes sale ... getting loads of conflicting info from friends who say we are liable to capital gains tax on the gain as we have not owned for a year ... we can extend the sale completion date so that we have owned for a year but that would affect travel plans ... could any one advise if we are liable ... many thanks ....
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Old Aug 4th 2011, 9:59 am
  #2  
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Default Re: capital gains tax clarification ..

Per the CRA:

A property qualifies as your principal residence for any year if it meets all of the following four conditions:

1) It is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit owned by that corporation.
2) You own the property alone or jointly with another person.
3) You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year.
4) You designate the property as your principal residence.


http://www.cra-arc.gc.ca/tx/ndvdls/t...ht/hw-eng.html

There is no requirement that you live in the home for a complete calendar year.

I think your friends might be getting your situation confused with people who buy homes, live in them a short while, do them up a bit, then flip them. These people can lose their principal residence exemption because the CRA deem them to be in the business of buying and selling homes.
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Old Aug 5th 2011, 4:07 pm
  #3  
Location:West Van, BC
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Location: Gloucestershire UK
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Wink Re: capital gains tax clarification ..

Originally Posted by JonboyE
Per the CRA:

A property qualifies as your principal residence for any year if it meets all of the following four conditions:

1) It is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit owned by that corporation.
2) You own the property alone or jointly with another person.
3) You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year.
4) You designate the property as your principal residence.


http://www.cra-arc.gc.ca/tx/ndvdls/t...ht/hw-eng.html

There is no requirement that you live in the home for a complete calendar year.

I think your friends might be getting your situation confused with people who buy homes, live in them a short while, do them up a bit, then flip them. These people can lose their principal residence exemption because the CRA deem them to be in the business of buying and selling homes.
many thanks JonboyE ... i thought this was the case,but cheers for the clarification ...
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