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Do you own a home on land ~ prepare for Trudeau Tax.

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CanuckShooter

Wapiti Killer
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Info on reporting sale of a principle residence: www.moneysense.ca/spend/real-estate/8-questions-about-the-principal-residence-tax-rules/

No. 4: Cannot earn income



Does the property you just sold make you money? If so, you may not be able to exempt the profit from capital gains tax. Under the CRA’s rules, a property cannot be considered a primary residence if it’s overall aim was to earn an income. For instance, an investor who buys a six-plex and lives in one unit, while renting out the other five, cannot shelter the capital gains earned on that property by using the principal residence exemption (PRE).



No. 5: Restriction on the amount of land



The size of land where your primary home sits cannot be greater than one-half hectare (or 1.2 acres) of land. So, if you bought a 10-acre farm and lived in the farmhouse, you wouldn’t have to pay tax on the appreciated value of the farmhouse or on 1.2 acres of the land—because they’d quality for the exemption. However, you would have to pay capital gains tax on the appreciated value 8.8 acres. Now, the CRA has said that you can get apply for a tax exemption on parcels of land that are greater than 1.2 acres, but you will need to prove to that the additional land was required for your use and enjoyment of the property.


So everyone that has a home on land in excess of 1.2 acres can now expect the federal government to tax at least some of the amount you sell for as CAPITAL GAINS. There are so many homes on 5 acre lots around here...there are going to be a lot of pissed off people when they find this out.

CS says IF you own a home on land [more than 1.2 acres] you better start saving every receipt for every penny you spend on your home, and record all insurance expenses, and mortgage interest...and property taxes...EVERY DAMN PENNY, keep track of it because those expenses are carrying charges and IF they assess you capital gains taxes when you sell....well you can claim all expenses against those gains as investments to earn the capital gains. Not only do they want to take away your guns they want to tax our asses even more....
 

gcreek

Beware of fat cooks and solictors for beer money!
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Farmers can claim a lifetime capital gain of a million each spouse. Is it not the same for all Canadian residents?
 
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