When is a house tax free in Canada - ask an

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 elswhere 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.
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.   
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20041003/be9ab48f/attachment.htm

Comments (0)


CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/UsCaWeekofMon20040927001341.html