buying mother's house

My question is: Canadian-specific

QUESTION: I have a house that is my primary residence in GTA.  I am thinking of buying my mother's home in Ottawa and looking to move there in the next year or two.  I am thinking of buying it now, and she would live there, paying rent for the next year or two.  When I sell my house in the GTA and move to the house in Ottawa will I have to pay Capital Gains Tax.  Also is there a minimum rent I need to charge her.

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david ingram replies:

If you own two houses at the same time, you will capital gains tax on one of them if they both go up ion value,. Better to leave the Ottawa house in mother's name until you buy it.

Better still, buy a different house and leave mom in her tax free house or at least make sure (if you do buy out her house) that she buys her retirement condo and does not just go and rent somewhere else.

There is no minimum or maximum retn you have to charge your mother but you can NOT claim rental losses as a dedcution on your return when rented to your mother, sister, brother, father, kids, etc.

(An exception would be where you own a condo in a building of retnal condos and you are renting it to mother for the exact market rent that all the others are rented for. If that was the case, a rental loss on your return could be claimed.)

Of course, you aren't supposed to charge your mother rent anyway. She didn''t charge you for room 'and' board for the first 16 to 25 years of your life. �

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