This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
(I have edited this question a bit The edits are in lighter
blue.)
Hi David,
I bought a new condo last year (spring 2002), closed in Dec 2002.
I originally bought it as an investment to rent out and then
decided to live in it myself and then was laid off before I even
closed.
I am currently on EI and looking for work. I Live at home with
my parents.
I wanted to move into my new condo but with limited funds, I
decided to rent it again.
With the softening rental market, I couldn't rent it and
eventually sold this past spring.
Will I have to pay capital gains on this sale?
Thanks!
----------------------------------
david ingram replies:
You either owe straight income tax or at the least capital gains
tax.
Because you had decided at some point that you were going to live
in it, I would do the return at Capital Gain rates which are half
as much.
However, if the Tax office decides to investigate your return
when they look at that building to see how many people "flipped"
their units, they will treat it as a "flip" and try to tax it
at straight income tax rates.
It is very important that you keep a record of when you decided
to live in it. Statements from friends about how excited you
were about your new apartment would help as well.
david.
david ingram - [email protected]
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - (604) 913-9123 www.centa.com
Cell is (604) 657-8451 (10 AM to 10 PM seven days a week)
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
Be ALERT, the world needs more "lerts"
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.500 / Virus Database: 298 - Release Date: 7/10/03
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://lists.centa.com/mailman/private/centapede/attachments/d8c8bb3c/attachment.htm
---------------------- multipart/alternative attachment--
What's Related