Capital Gains on Rental Property (BC, Canada)

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bdbd
Posts: 1
Joined: Tue Mar 24, 2020 2:27 pm

Capital Gains on Rental Property (BC, Canada)

Post by bdbd »

- Married couple owns a property 50/50
- It is a big house on 3 acres of land
- The property was rented the entire term of ownership to the same people
- The tenants lived in the property before the purchase and stayed after the sale
- Married couple lives in a different place with a much smaller capital gain
- The property was held for 10 years and the capital gain was significant
- Is it possible to reduce/defer/avoid paying the capital gains taxes on this?
- Possible to declare as their principal residence? Replacement property? Other?

https://www.canada.ca/en/revenue-agency ... dence.html
Section 2.54/2.56
"A property can qualify as a taxpayer’s principal residence for up to four tax years prior to a change in use covered by a subsection 45(3) election, in lieu of fulfilling the ordinarily inhabited rule"

- Can they claim a change in use at the purchase or sale, in order to shelter a portion of the gain as their principal residence?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Capital Gains on Rental Property (BC, Canada)

Post by nelsona »

This is a cross-border tax forum.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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