RE:RE:RE:RE:RE:RE:RE:!!!!!!!!!!!,,,,A SLICK Video........From TruDOPE !!!!!!!!!!Am I dead wrong on both points or just the cottage thing? LOL
I think both of you should seek professional tax advice because if you can't figure out how to slip that cottage over to your kids without paying extra taxes on it I am sure they can and btw the idea is to not pay more taxes over the 250k inclusion rate. So gift the kids a share say one quarter per year and keep the gain under 250k.
When and how do you think the CRA knows you changed your principal residence in order to assess that gain? You're both just guessing and you really don't know.
This is going to affect you financially...when? Maybe not ever. But by all means, stew now.
GLTY and all
djb633 wrote: You are dead wrong, for starters if you gift your cottage to your children you are still required to pay capital gains. The cottage is accessed at the time of the gift and you pay the capital gains on the difference in what you paid. If you just bought land like I did and built the cottage yourself you get no deductions for your labour and pay capital gains on the full value minus only the cost of the land and your materials.
Cottages can become principal residence but you still have to pay capital gains on the difference of price when you bought and when it becomes your principal residence.
I'm far from wealthy and and this is going to effect me financially