My question is: Canadian-specific QUESTION: My husband and I bought a house (in Canada) in March and have decided to separate. He's just been told that we will likely have to pay 50% tax on any money that is "gained" over the original purchase price as it will spear that we are "flipping" the property. It is unlikely, however, that we will be left with any such gains after penalty fees and realtor fees. Is it true that we will have to pay taxes when we are selling due to separation? Thank you, ---------------------------------------- david ingram replies: If you are selling because of a marriage breakdown and bought the house as a principal residence, there is no tax if it is the only house you own. On the other hand, if you or both of you owned a condo (or other house) before you were married and bought a house to live in together and you both rented out the condos, then you would make the condos taxable during the time that you were living in the new house. 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