1

I am trying to figure out the Capital Gain taxes on a property in Toronto. I am very new to this, so sorry if I say something weird.

I live in a condo, which I own, and I am thinking of renting it.

I have lived here for the past three years, and it is the only property that I own(it was fully transferred to me as a gift), so it is my principle residence at this moment.

From what I understand, If I were to sell this property now, I will not have to pay any capital income taxes, as principle residence is not taxed. source 1

Also, from what I understand, as soon as I begin renting the condo, it will loose its status as a principle residency, and I will have to pay 1/2 of the price increase in each year that it is a rental property.

However, here, I see that it is possible to still keep its status of principle residency for up to 4 years, thus not paying any capital gains for those 4 years, as long as one is a resident of Canada and they do not deem their other property as their principal residency.

Now, I am not a permanent resident or a citizen, I am a student, on a student visa and a study permit. Will I be able to keep the property's status of principle residence, thus not owing any capital gain taxes upon selling it, if I go back to living in this property in 4 years?

Note: I am likely to receive a permanent resident status during those 4 years through a common law partner sponsorship. Will this somehow affect the taxes?

Also: I will be living in my girlfriend's apartment in those 4 years, and I do not own any parts of it.

Thank you for your help! Sorry for a terribly long post, first time posting on StackExchange.

Improve this question
3
  • Taxes for which country?
    – A.K.
    Commented Jul 26, 2018 at 3:22
  • Canada. I guess the real question really is whether what they mean by a resident on their website equals to what is meant by a permanent resident immigration-wise.
    – V. B
    Commented Jul 26, 2018 at 4:05
  • I believe you would be considered a resident for tax purposes. Tax residency is only loosely related to immigration residency. But you can phone CRA and ask them.
    – Spehro 'speff' Pefhany
    Commented Jul 29, 2018 at 21:28

1 Answer 1

Reset to default
-1

Hire an accountant.

Tax rules are personal.

Tax rules regarding large transactions could have tremendous implications if you aren't every single aspect of the rules properly.

Tax on large transctions + DIY = foolishness.

If you don't have the time, that's fine, have your manager hire one.

If you can't afford an accountant or a manager, then it's a bit of a foolish move to buy a condo in the first place, and to consider selling.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .