tag:blogger.com,1999:blog-4402283548766807872.post8714399888076680448..comments2024-03-29T02:47:49.234-04:00Comments on The Blunt Bean Counter: The New Principal Residence Reporting Requirements – Large Implications for the Average Canadian The Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger36125tag:blogger.com,1999:blog-4402283548766807872.post-22766207376329620392018-01-08T22:54:21.138-05:002018-01-08T22:54:21.138-05:00As noted in my post, you need to co-ordinate with ...As noted in my post, you need to co-ordinate with the lawyers and accountants, I would need to be involved to know all the facts before I answer the question. SorryThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-88158451310267557232018-01-07T23:13:01.273-05:002018-01-07T23:13:01.273-05:00Thank you Mark. Can I designate a property princip...Thank you Mark. Can I designate a property principal residence in the year of divorce (my formal wife will take the current principal residence)?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-90143431519104553582018-01-02T20:48:04.416-05:002018-01-02T20:48:04.416-05:00Hi Anon
Great question, I did not have that situa...Hi Anon<br /><br />Great question, I did not have that situation last year so I never had to research the answer. I took a quick look and could not find the answer, so I cant help you. Sorry, but I don't have time to research each question I get from the blog.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-16067347737121068132018-01-02T15:02:41.145-05:002018-01-02T15:02:41.145-05:00Hi Mark, great info. Do I have to report this prin...Hi Mark, great info. Do I have to report this principal residence transfer to formal wife on divorce? Thank youAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-22942064986449405472017-02-24T19:31:45.161-05:002017-02-24T19:31:45.161-05:00Hi Anon
I do not provide personal tax planning ad...Hi Anon<br /><br />I do not provide personal tax planning advice on this blog. speak to an accountant your situation is a bit complicated, however, depending upon all the actual facts you may be able to accomplish what you wish.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-56255162185074882752017-02-23T01:53:12.268-05:002017-02-23T01:53:12.268-05:00Hello Mark,
When we bought a condo my wife was in...Hello Mark,<br /><br />When we bought a condo my wife was indicated as the only owner of the property. Now we bought a new house which will become our PR and want to rent out our condo. Since the use of property will change for the condo a capital gain will arise on a deemed sale. We used to file a joint return with my wife. My wife has no income. Will she pay the capital gain tax in a lower bracket if the capital gain is included in her individual return instead of mine as my bracket is already high?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-67975637238499631132017-02-21T19:54:58.908-05:002017-02-21T19:54:58.908-05:00its all facts. If you have good facts you can win,...its all facts. If you have good facts you can win, bad facts maybe not. Most people do not get assessed or go to court, just engage an accountant to review your situation, your situation may be clear cutThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-68718541162635669232017-02-20T22:45:49.882-05:002017-02-20T22:45:49.882-05:00Can you defend you case in the court? It sounds li...Can you defend you case in the court? It sounds like people are left defenseless against CRA.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-76600373885914939702017-02-20T18:04:01.472-05:002017-02-20T18:04:01.472-05:00Not necessarily, many people have bought and sold ...Not necessarily, many people have bought and sold houses/residences that meet the criteria and claimed the PRE and the CRA has reassessedThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-15495563278031331432017-02-19T19:41:56.417-05:002017-02-19T19:41:56.417-05:00Thanks! I was of impression that if all of the fou...Thanks! I was of impression that if all of the four conditions for a property to qualify as my principal residence are met CRA cannot challenge it. Anyway, thanks a lot! Your blog is a tremendous help! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-72055072537362948932017-02-19T17:01:05.525-05:002017-02-19T17:01:05.525-05:00see belowsee belowThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-51538472551487302952017-02-19T16:57:53.774-05:002017-02-19T16:57:53.774-05:00Anytime in the year can be one day, but other fact...Anytime in the year can be one day, but other factors may come into play whether the property qualifies for the PRE. That is why you have to discuss your situation with an accountant who is aware of all the specific facts and can guide youThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-46553745603598117052017-02-19T15:57:08.870-05:002017-02-19T15:57:08.870-05:00Hello Mark,
How long shall I live in my principal...Hello Mark,<br /><br />How long shall I live in my principal residence to qualify for PRE ? Can it be less than 1 year ? The tax rule says that property qualifies as principal residence when "You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year". What is some time here ? Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-52461787297960989972017-02-19T11:45:19.548-05:002017-02-19T11:45:19.548-05:00Hello Mark,
Thanks for your response. I will defin...Hello Mark,<br />Thanks for your response. I will definitely do that. Meanwhile,making the question simpler, how long do I need to live in my house as a principal residence to qualify for PRE ? Appreciate your response. <br /><br />Thanks<br /><br />DreamJobhttps://www.blogger.com/profile/09157448063593993169noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-59575170027907717322017-02-19T09:57:49.197-05:002017-02-19T09:57:49.197-05:00Hi Dream Job
Sorry, I do not answer specific pers...Hi Dream Job<br /><br />Sorry, I do not answer specific personal tax planning questions on this blog, especially relating to multiple residences as the issue is complex and often requires detailed calculations. I would suggest you engage an accountant to assist you in this matter if u do not already have one.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-63841751415711043782017-02-19T02:40:05.553-05:002017-02-19T02:40:05.553-05:00Hello Mark,
Having lived for two years in our con...Hello Mark,<br /><br />Having lived for two years in our condo we are selling it this year and getting into possession of a new one which was bought as a pre-sale and will be completed in the same month I am selling my current condo. However, as we realized it will be not big enough for our family we decided to sell it as well and buy a townhouse instead in different area. All transactions will happen in the same year and my second condo will be our principal residence for 2-3 months only until it is sold. Will the capital gain from the sale of this condo subject to capital gain tax since we will have owned it less than 1 year? DreamJobhttps://www.blogger.com/profile/09157448063593993169noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-28738874559043250352016-11-21T17:25:44.548-05:002016-11-21T17:25:44.548-05:00Hi Brandon
I think your experience has been simil...Hi Brandon<br /><br />I think your experience has been similar to mine. You are correct, you do know the answer. I think the CRA will be looking a lot closer at this issue, so the prudent advice is to tell them to get a valuation at death, however, depending upon the circumstances and timing, that may not be the most practical advice, but let the client make that decision, not you.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-5719452190538143862016-11-21T13:43:09.936-05:002016-11-21T13:43:09.936-05:00Hello Mark
It has been my experience that, prior t...Hello Mark<br />It has been my experience that, prior to the above changes, that with simple estates where the principle residence was the primary asset, that the CRA was not overly concerned about any changes in value of princicple residence between the time the individual passed away and when the house was eventually sold(if sold in a timely manner). With the above changes do you see this being a bigger issue going forward? Should a tax professional be counselling executors to get an assessment completed for all principal residences at the time of death to determine Fair Market Value?(I assume that I know the answer already). Thanks. Thanks for the blog, it makes for insightful reading. Anonymoushttps://www.blogger.com/profile/16009072317772608389noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27022750081926550662016-11-07T11:12:11.915-05:002016-11-07T11:12:11.915-05:00Hi Anon
I understand your question and why you wo...Hi Anon<br /><br />I understand your question and why you would not like how the formula works in your situation, but it could go the other way also. The CRA makes no allowance, your gain is however reduced by the years you designate the cabin as your PR.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-20194032243697488412016-11-06T18:34:46.092-05:002016-11-06T18:34:46.092-05:00Mark
A person owns both a house and a cabin for 20...Mark<br />A person owns both a house and a cabin for 20 years and then sells the house and claims it as their principal residence, paying no capital gains. They then use the cabin for the next five years as their principal residence and during that time the value of the cabin increases at a much greater rate than it did in the first 20 years. Lets say in the first 20 years it increased $100k and then again increased in value in the next 5 years by $100k.<br />Using the CRA's formula, if the person was to sell the cabin, the capital gain would be around $152k when in fact it should only be $100k. <br />Do you know if the CRA makes any allowances for a situation like this?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-33770040616522423602016-11-03T12:30:42.352-04:002016-11-03T12:30:42.352-04:00Thanks for your reply. The new rules really change...Thanks for your reply. The new rules really changes everything. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-40776798840502869782016-11-03T00:25:32.632-04:002016-11-03T00:25:32.632-04:00Hi Anon
As noted above, each family unit can only...Hi Anon<br /><br />As noted above, each family unit can only claim one PRE, thus the answer is no.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-35889512137337358282016-11-03T00:24:17.237-04:002016-11-03T00:24:17.237-04:00glad it was of useglad it was of useThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-41649659735206156162016-11-02T16:18:18.965-04:002016-11-02T16:18:18.965-04:00I work in Saskatchewan during the week days and bo...I work in Saskatchewan during the week days and bought a house recently there instead of renting. My wife and kids still live in Alberta at a house we've lived for past 5 years and I go back during the weekends to see my family. Can each of us to claim PR on each property under the new change? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-22548334876204171532016-11-02T09:55:14.483-04:002016-11-02T09:55:14.483-04:00Mark, thanks for this great article. You wrote a ...Mark, thanks for this great article. You wrote a thorough and detailed explanation of how the new rules affect ordinary Canadian homeowners and taxpayers. Coincidentally, we sold a property this year before the rules were announced but since they apply to the full year, we'll feel the impact. Saving your article for discussion with our tax accountant. Thanks again!Anonymousnoreply@blogger.com