flip or capital gain on early sale of Yaletown condo

QUESTION: Hi, David:

I got you contact information on Ask an Expert. Like the girl from Alberta who bought Yaletown condominium, my primary initation to move in here as primary residence. But later my realtor got me a very good deal in Eden, which is in the center of Yale Town. Before Yaletown condominium is ready to take position, I have to decide where I want to live, Eden or Yaletown. I decide to sale Yaletown since I can't afford to pay two mortgages, and doesn't like to rent out, too much problem. This is my first time selling a real estate property, I am sure I have to pay Capital Gain, if I am right 3/4 is taxable? Normally will I get a summary of my sales in Yaletown condominium, including the commission I paid on the purchase and sale? I had $21k Capital loss from my previous years, and I decide to use $21k to again my gain on sales of Yaletown condominium. I am using Quick tax to do my tax return, under the capital gain on sell of Yaletown condominium, I should just enter the 3/4 portion?

david ingram replies

On Feb 28, 2000 the CRA changed the amount taxed from 75% to 66 2/3rds.
On Oct 18, 2000 the CRA changed the amount taxed from 66 2/3 to 50%

So, if you manage to get a capital gain rate, you will only be taxed on 50% (see schedule 3) and can use the capital loss carryforward as a deduction.

However, you will have to have good evidence that you bought it to move into. The CRA will be looking at all short term sales of the paper and wanting to tax on the whole profit as a flip.