RE:RE:RE:RE:RE:RE:RE:!!!!!!!!!!!,,,,A SLICK Video........From TruDOPE !!!!!!!!!!Yeah they woulkd both work as no one said you had to dispose of all your assets and claim over 250k capital gains in the same year unlike death but it does take planning.
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.
GLTY and all
Red_Deer wrote: Cottages and wealth can be dealt with quite easily before death by giving them to whomever was going to inherit them before you die and if no one was then who cares? Cottages can become primary residences by being lived in before selling.
Hey QUINT__NEITHER of Your AVOID the TAX Strategies ACTUALLY Would Work
As They BOTH Get CAUGHT by the ""DEEMED DISPOSITION"" Tax RULE/LAW
The DAY Anyone GIVES/GIFTS a Capital Asset__The Asset WILL be DEEMED to HAVE BEEN
DISPOSED @ the VALUE of the ASSET on The DAY of the GIFT TRANSFER__THUS the
CAPITAL GAINS Tax WILL HAVE to BE PAID__NO ESCAPE !!!!!
The ONLY WAY This WOULD Work is IF the ASSET TRANSFER Actually IS @ a LOSS__BUT
of Course CRA WILL DEMAND a SOLID PAPER TRAIL to VERIFY All Aspects of the Transfer
of ASSETS__No Matter Whether a LOSS or GAIN.
The SAME Principles WOULD APPLY to Your Summer Cottage STRATEGY. What CATCHES
This Into the CAPITAL GAINS Realm IS that There WAS a ""CHANGE IN USE""__And You
GUESSED IT__A Change in Use WILL BE DEEMED by CRA to KICK in the Capital Gains
Tax__ALL the GAIN in VALUE Since Ownership to the DAY of BECOMING a PRINCIPAL
Residence WILL BE SUBJECT to Capital Gains TAX.
NoneTheLess BOTH of Your Strategies DO HAVE Some Merit__ESPECIALLY For the LUCKY
Ones With STILL Many DECADES of LIVING.
By DOING these Transfers/Change of Use NOW__INSTEAD of in One's ESTATE__LIKELY
MAY SAVE a LOT of TAX__IF it Can BE ASSUMED That the VALUE of the ASSETS Likely
WILL KEEP on GROWING__Thus INCREASING the TAX BURDEN if Held to the END in
an ESTATE.