My question is: Canadian-specific
QUESTION: I bought a CMHC second home 2 years ago with 5% down. My mother lived in the home rent free as per the guidelines and I did not and could not write-off any of my expenses. I have just sold it for a tidy profit as my mother has moved out. Now, I am hoping I do Not have to pay any Capital Gains tax as it was purchased as a NON-Revenue home through CMHC, only 5% down, and I was not able to treat it as such with write-offs. Am I correct on this?
--------------------------------------------------------------------------- david ingram replies:
The answer is simple.
If you bought the house for your mother and she is getting all of the profit in her hands to keep, you were just a trustee and there is no tax because it was your mother's house.
However, if you are keeping all of the money, it is taxable.
