----- Original Message -----

From: David Ingram at the CEN-TA Group

To: s

Cc: Ozzie Jurock

Sent: Wednesday, July 24, 2002 3:04 PM

Subject: Kamloops Forecast

> >From: S

> >To: ozzie@jurock.com
> >Subject: Kamloops Forecast
> >Date: Tue, 23 Jul 2002 20:18:41 -0400
Ozzie has asked me to answer the tax part of this question.  I will leave it to him for the Kamloops forecast.

 

David Ingram

 

I am looking at purchasing a duplex with my father.  I would live on one 
side, rent out the other.  My father would put up 100% of the down payment.

Under the circumstances, I would assume that the building will be in both names.  If so, your side is your prinipal residence and your father's side is a rental.  In this case, if the building goes up in value, any profit is free of capital gains tax.

 

Your father can write off his share of the interest, taxes, repairs and maintenance, advertising, etc.  When you sell the building, your father would be taxable on his half.

 

If your father were to loan you the money and you owned the whole rental, he could not write off anything and must report an imputed amount of interest from you even if he decided not to charge you interest.

 

In this case, any write-offs for tax purposes would likely be yours.

 

.

Could it be considered a primary residence if I live there but he doesn't?

 

As above, it is a primary residence for you, not your father.

Subsequently, could he write it off as an investment?  If not, how could 
he make this a tax advantage without putting 25% down?

 

If you are living in it, he can only write off one-half of the expenses.  Any expenses he paid that could be considered to be for your benefit, are NOT deductible for him.

I would also like to know what your forecast for Kamloops is?

 

I will let Ozzie give you his forecast.

Thank you

SXXXX
>
> Ozzie Jurock