Selling two properties at the same time -negotiating the real estate commission for best deal

My question is: Canadian-specific

QUESTION: I am selling, at the same time, the residence I reside in, as well
as an investment property which happens to be located right next door to my
home. I've signed the same real estate agent to both listings in exchange
for a favourable arrangement on the commission. My question is: What is the
best way for us to structure the agent's commission between the two
properties in order to place the bulk of the commission on one property (or
the other) in order to minimize capital gains on the investment property?
Thank you very much for taking the time to answer my question.


david ingram replies:

In Canada or the United States, if I were you I would have made a deal to
pay full commission on the rental and nothing or a greatly reduced
commission on the principal residence.

However, negotiating a different deal now to make it "look" that way could
be construed a criminal act to defraud the CRA or IRS so be careful with
what you do.

As one judge said in a tax case i was an agent on, "you can call a toad a
frog all day, but it's still a toad". (My apologies to those who love
toads).

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