Capital Gains on Rental Property (BC, Canada)

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Capital Gains on Rental Property (BC, Canada)

Post by bdbd » Tue Mar 24, 2020 2:59 pm

- 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? ... 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?

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

Post by nelsona » Wed Mar 25, 2020 9:35 am

This is a cross-border tax forum.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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