1. Can you sell your principal residence and then claim your recreational property as principal residence (both Canadian)? If so, what are the capital gains implications if you then sell your recreational property (which is now your principal residence)?
Obviously, you can't go around claiming principal residence and then selling property after property without being noticed.
2. Is there a time frame that you need to inhabit this recreational property to allow for a sale as a principal residence?
3. Is the entire amount of increased value (purchase price to today's worth) sheltered from CG or just the portion from the day you declare the recreational property to be your principal residence?
4. Is there a limit of land size when claiming principal residence? I heard there was a limit of 1 acre of principal residence being sheltered from capital gains unless you can prove the necessity of the remaining land base (i.e. access to the dwelling).
5. What are your rates for service? Counsel for Capital Gains management (recreational and principal residence) so that the heirs aren't left with a tax burden that forces the sale of the recreational property.
Thanks,
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david ingram replies:
1. yes but not for the same time period. See form T2091 to see how the CRA looks after this
http://www.cra-arc.gc.ca/E/pbg/tf/t2091_ind/t2091-ind-04e.pdf
2. no and yes. It can only be designated for the time that you did not designate the other house
3. just the portion you declare.
4. the limit is 1/2 hectare which is 1.22 acres. If the land can NOT be subdivided because of zoning or other laws which require 4 acres for a septic field (as an example), then the whole piece might be allowed. Goto www.centa.com and read the capital gains section in the TAX GUIDE which you will find in the top left hand box for some examples.
5. fees are stated in the following missive.
