$30,000 special assessment for a leaky condo.- Fred

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My question is: Canadian-specific
QUESTION: I have to pay $30,000.00 for a leaky condo. Is this classified as a capital gains loss?
david ingram replies or asks?
  Are you living in the condo or is it a rental?
  Did you ever live in it?
  Were you living in it when you knew that it was a leaker so you moved out and rented it so that you could write off expenses?
questioner replies:
I purchased the condo in May 1997 and resided there.
October 05, 1997, engineers were consulted and determined water penetration.
I moved out July 1998.
Repair approval February 2001.
HPO reconstruction load January 2003.
Current renters moving out June 12, 2004.
March 31, 2004, I retired and cannot afford the expenses to live there.
Do I sell or continue to rent?
david ingram replies:
You need to continue to rent it out to stay even in the future or perhaps sell it and buy another one that you can afford.
Because you knew it need leaky condo repairs when ypou rented it ouot, the repairs are NOT deductible as repairs.  They "will" be added to the adjusted cost base for the purposes of future capital gains tax.
You should come out to our free investment seminar at 1764 west 7th in Vancouver from 7 to 9 PM on Thursday evening
You will learn about some cash flow management techniques.
david ingram - if you cannot make it to the seminar this Thursday, the 20th or next Thursday, the 27th of May, there is another choice.
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
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Authored by: Carole on Tuesday, July 27 2010 @ 09:09 AM PDT $30,000 special assessment for a leaky condo.- Fred

I live in Alberta and have just learned a rental condo I own 50/50 with a Joint Venture partner will be assessed $30,000 due to a leaking building envelope. I was supposed to buy out my JV partner, and we have a signed Purchase Contract for the appraised value of the property. Conditions come off on Friday. I don't know whether to revise the deal and reduce the Purchase Price by $30,000 or just cancel the deal altogether.. My interest in buying out my partner has to do with his pending bankruptcy and his failure to act in a reasonable manner as a JV partne for the past 18 months. I don't want to stay tied to him during his bankruptcy, but neither do I want to waste money buying him out if I am going to lose money on the property value. I don't know what to expect as owner of a leaky condo (expenses, repairs, litigation, board matters).

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