Capital gains tax when moving because of neighbourhood
QUESTION:
We moved 9 months ago and have just found out that townhouses are going to be built behind us, as of May 2008. We do not want townhouses looking into our backyard. When we bought the house in Feruary, we were not aware that builders were going to tear down the existing house and barn to build townhouses. We would like to stay in the same neighbourhood (maybe across the street or across and down). Either way, will we have to pay capital gain if we were to move again soon?
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david ingram replies:
If you are moving because of an outside irritant you were unaware of when you bought, any capital gain would be tax free. If it is the third time in three or four years you may / will have to justify it to the CRA becasue they will assume you are a flipper. �
We moved 9 months ago and have just found out that townhouses are going to be built behind us, as of May 2008. We do not want townhouses looking into our backyard. When we bought the house in Feruary, we were not aware that builders were going to tear down the existing house and barn to build townhouses. We would like to stay in the same neighbourhood (maybe across the street or across and down). Either way, will we have to pay capital gain if we were to move again soon?
--------------------------------------------------------------------------------------------
david ingram replies:
If you are moving because of an outside irritant you were unaware of when you bought, any capital gain would be tax free. If it is the third time in three or four years you may / will have to justify it to the CRA becasue they will assume you are a flipper. �
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