How long do you have to live in a home for tax free in

My question is: Canadian-specific
QUESTION: I recntly puchased and live in a condo.  I have
only been in here for a month and a half.  If I sale
and make a  gain, do I have to pay capital gains
tax.  How long to I have to reside before I do not
have to pay the taxes
---------------------------------------------------------------------------
david ingram replies:
No time to answer this specifically so am answering it with an old reply.
My question is: Canadian-specific
QUESTION: If I bought and moved into a house and decide 6 months later that
I don't like it and sell that house to move elsewhere do I attract capital
gains on the sale of my home?
=================================
david ingram replies:
And how high is up?
If you bought a house to resell any profit is taxable at ordinary income
rates unless you can get it into another category.
If you bought a house or cabin to rent or use as a second home and decide
ten years later to sell it for some reason or other, it is likely a capital
gain.
If you buy a house and decide to sell it in six months, you can expect that
the CRA "might" try and tax you at full rates unless you can show that the
house was truly your principal residence and that you sold it for reasons
other than making a profit.
reasons might be:
1.    You lost your job
2.    The school your child goes to is just not any good
3.    You cannot stand your neighbour
4.    You get divorced
5.    you are transferred to another city
6.    You are pregnant and need a bigger house
7.    My favourite was a couple who ended up in a battle with organized
druggies and sold out in fear of their lives.
However, if you bought a fixer upper and fix it up and sell it and buy
another fixer upper around the corner and your kids keep on going to the
same school and you shop at the same stores and catch the same bus, etc.,
you will be paying straight tax.
The US is different.  In Canada it is "all" tax free as a principal
residence or taxable. In the USA, you have to have lived in the home for 2
out of the last five years to claim up to $250,000 tax free per person.  If
you sell before the 24 months is up for a good reason - death of a spouse
job transfer, job loss, etc. - then you can prorate the $250,000 by
multiplying $250,000 by the number of months you were in it divided by 24
(12 months would be $125,000 for instance).
=========
Answers to this and other similar  questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier
Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS
YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com
Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600.
Old shows are archived at the site.
This from ask an income tax immigration planning and bankruptcy expert
consultant guru or preparer  from www.centa.com or www.jurock.com or
www.featureweb.com. Canadian David Ingram deals daily with tax returns
dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for
the United States, Canada Mexico Great Britain the United Kingdom, Kuwait,
Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,
Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia,
Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana,
Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok,
Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,,
Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the
43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts  specialist
specialists  consultants taxmen taxman tax woman planner planning
preparer of Alaska,  Alabama,  Arkansas,  Arizona,
 California Denver  Colorado, Connecticut,
Delaware District of Columbia Miami  Florida,
Garland Georgia,  Honolulu Hawaii,  Idaho,  Illinois,
 Indiana Des Moines Iowa  Kansas  Kentucky,
 Louisiana  Bangor Maine  Maryland  Boston, Massachusetts, Michigan,
Minnesota,
Mississippi,  Missouri,  Montana,  Nebraska,
Nevada, New Hampshire,  New Jersey,
New Mexico, New York, North Carolina,
North Dakota,  Ohio,  Oklahoma,  Oregon.
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall,
South Carolina, South Dakota, Tennessee,
Texas,  Utah, Vermont,  Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas  Taxman and Tax Guru  and wizzard
wizard -
 David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road (Personal residence by appointment only please)
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 Fax (604) 980- 0325
davidingram at shaw.ca www.david-ingram.com
Disclaimer:  This question has been answered
without detailed information or consultation and
is to be regarded only as general comment.
Nothing in this message is or should be construed
as advice in any particular circumstances. No contract
exists between the reader & the author and any and all
non-contractual duties are expressly denied. All readers should obtain
formal advice from a competent financial, or real estate planner or advisor
& appropriately qualified legal practitioner, tax or immigration specialist
in connection with personal or business affairs such as at www.centa.com.

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20050103001516.html

No trackback comments for this entry.

0 comments