Advertisement
It could, depending on the hectares and principal residence designation
Q: My mother and I jointly own a house that we both live in. We got the okay to subdivide the land into two equal-sized parcels, and we each want to be the sole owner of one parcel. Is the subdivision or the change in the titles going to trigger capital gains taxes?
—M. Scott Taylor, Calgary
A: What is a hectare? I personally have no idea. The transition to metric occurred when I was in elementary school, so my ignorance is clearly not my fault. But you actually need to know how big a hectare is, or 0.5 hectares to be precise, because that is the size which will determine whether or not this plan will trigger capital gains taxes. Assuming each ‘piece’ is under 0.5 hectares and is designated as the principal residence, then the sale would not result in capital gains tax, according to the CRA. That said, pick up the phone and go through your situation with them because you won’t be able to use my elementary school excuse if they end up doing a reassessment.
Bruce Sellery is a frequent guest on financial television shows and author of Moolala. Do you have your own personal finance question? Write to us at [email protected]
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Here’s how to get your free ticket to attend two MoneyShow virtual expos.
A new Desjardins report predicts rent inflation will slow in the next few years.
The federal government’s capital gains inclusion rate increase has yet to become law. There’s a slight chance it may...
Experts say Donald Trump’s promised policies risk higher inflation and could weigh on the Canadian dollar.
Sponsored By
Coast Capital
Inflation is down, wages are up. But the economic recovery has been uneven, with “two contradictory trends” shaping Canadians’...
“After rushing into the real estate market, I quickly learned I wasn’t ready for the real cost of home...
Spending thousands of dollars on upgrades to your living space can be daunting for seniors. Here are some financing...
A similar question. I have lived in my home 34 yrs & it sits on 6 acres. I have subdivided a 2.25 ac lot off of it & sold it. Do I have to pay capital gains on it?
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.