Selling the paper on a pre-build
My question is: Canadian-specific QUESTION: Hi, I purchased a presale condo last year, planning on moving in this summer. However, the market has risen some more. Now I'm thinking of selling it on assignment. So what are the implications, if any, for income taxes? Would it be considered capital gains, or nothing because it's considered principal residence (even though I've never lived in it)? This is my 1st and only home purchase. --------------------------------------------------------------------------- david ingram replies: It is not tax free because you have not lived in it. Therefore, it is either straight income or a capital gain. If you were genuinely going to move into the unit, it is capital gains and only 50% is taxable using schedule 3 and putting it on line 127. If the "evidence" showed that you intended to "flip" it, the whole profit is taxable with the rest of your income by filling in schedule 2124 and putting the results on line 135 of your return. goto the top left hand box at www.centa.com. Click on Tax Guide and then on the Capital Gains section for a better idea about how capital gains and straight income are differentiated. ================ David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://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. 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