Red_Deer wrote: As for the cottage...the "change of use" only comes into effect for properties that were used for business purposes like rental properties. So unless you were renting the cottage out on the side the CRA is not going to come looking if you sell the home and then move into the cottage and sell it down the road especially if you just transfer ownership to the kids...grandkids ...whomever as no gain is no gain. That will be their problem if they don't do the same thing with their kids, grandkids.
Hey QUINT__You ARE CORRECT__But NOT For ALL COTTAGE Owners__PLUS a LOT of
Cottages ARE QUITE ""ROUGH"" Making For a TOUGH CHANGE in the QUALITY of LIVING
COMPLICATED STUFF eh !!!!
BUT EVEN If the Cottage WAS RENTED There IS Some WINDOW to DEFER the Capital Gains Taxes__AS LONG AS Your NEVER CLAIMED Any DEPRECTION (CCA) on it Since 1985__This
LIKELY Could BE a PROBLEM For a LOT of Cottage Owners eh ????
From the HORSE's MOUTH - CRA Changing all your rental or business property to a principal residence
When you change your rental or business property to a principal residence, you can elect to postpone reporting the disposition of your property until you actually sell it. However, you cannot make this election if you, your spouse or common-law partner, or a trust under which you or your spouse or common-law partner is a beneficiary has deducted CCA on the property for any tax year after 1984, and on or before the day you change its use.
This election only applies to a capital gain. If you claimed CCA on the property before 1985, you have to include any recapture of CCA in your business or rental income and the income in the year you changed the use of the property.
If you make this election, you can designate the property as your principal residence for up to 4 years before you actually occupy it as your principal residence.