Sentences with phrase «of a principal residence»

The $ 250,000 / $ 500,000 exclusion for sale of principal residence remains in place.

You can only use the credit toward the purchase of a principal residence, so vacation homes and investment property don't qualify.

That first step would be to buy your principal residence and it's so important to take advantage of the principal residence exemption.

Such property may be considered a principal residence of the individual under Canadian law if all of the other requirements of the definition of a principal residence are met.

When you determine whether you are a first - time homeowner you must take into account any previous ownership of a principal residence by your spouse.

The new rules will require you to report every sale of a principal residence on your tax return, whether you owe tax or not.

Taking advantage of the principal residence exemption and enjoying the home.

Outside of the principal residence context, the return on real estate is lesser than popular perception.

The value of principal residences, on paper, accounts for more than a third of the total wealth held by Canadian households.

Remember, there are no changes to the current requirements of the principal residence exemption.

Included in a package of measures to slow down the housing market was a new rule requiring people to report the sale of a principal residence on their tax return starting in 2016.

One of the more significant changes occurred in 1982 when spouses could no longer each claim a principal residence exemption which enabled a «double - up» of the principal residence exemption.

Tax specialists and policy makers speculate that a possible plan would allow a capped amount to be tax - free on the sale of your principal residence with any proceeds over this amount to be taxed as capital gains in your tax bracket at the time of sale.

As discussed above, paragraph (c. 1) of the definition of principal residence in section 54 of the Act enables a trust, in effect, to claim the principal residence exemption if very specific conditions are met.

«If you claim part of your home as business usage, I can see them perhaps taxing a portion of the principal residence when you sell,» says Bell.

«If you claim part of your home as business usage, I can see them perhaps taxing a portion of the principal residence when you sell,» says Bell.

And the taxman has not required Canadians to report the sale of a principal residence if the PRE will shelter the full gain from tax.

When you move out of your principal residence and rent it out rather than sell it, the property has what CRA calls a «change in use» — it becomes a rental property used to generate rental income, rather than a principal residence with no income.

If you change all or part of your principal residence into a rental property, or move into a rental property that you own, you will be considered to have disposed of all or part of the property at the time you change its use from either personal to business or business to personal, as the case may be.

FHA Energy Efficient Mortgage: A program that provides mortgage insurance for the purchase or refinance of a principal residence that incorporates the cost of energy efficient improvements into the loan.

(3) For exclusion from gross income of gain from involuntary conversion of principal residence, see section 121.

«A family could still optimize the benefit of the principal residence exemption by designating the property with the greatest accrued gain as the principal residence.»

The designation of a property as a principal residence is a significant and important financial planning tool because the CRA allows you to shelter the profits earned on the sale of a principal residence from taxes owed.

substantial destruction of your principal residence by fire or weather related activity; or 4.

Costs directly related to the purchase of a principal residence for the employee (excluding mortgage payments)

(For more on the basics of the principal residence exemption and how the sale of property doesn't always produce a capital gain see my Home Owner column in the June 2013 issue of MoneySense.)

Profits from the sale of almost all capital assets, with the exception of your principal residence, are subject to tax as a capital gain.

Capital gains are exempt up to $ 250,000 ($ 500,000 if married) on the sale or exchange of your principal residence if you have lived in the home for the last 2 out of 5 years.

A: Stefan, you are deemed to have disposed of your principal residence in 2011 when you started renting it out.

If a written binding contract was entered into by a taxpayer before December 15, 2017 to close on the purchase of a principal residence before January 1, 2018, the old rules will apply if the home is purchased before April 1, 2018.

Despite some efforts in Congress to allow this, as of right now, the Bankruptcy Code does not allow any mortgage modifications to the primary mortgage of your principal residence.

Concurrent with the Department of Finance's announcement, the CRA announced significant changes to its administrative position regarding the reporting of principal residence dispositions.

This surprises the average Canadian since conceptually the understanding of a principal residence is easy to understand: «It's my house!»

The definition of principal residence also contains a size restriction on the immediately contiguous land to the housing unit (not to exceed a half hectare unless the taxpayer can establish that any excess was necessary for the use and enjoyment of such property — the courts are littered with cases where the taxpayer has argued that the excess land is necessary for the use and enjoyment of the property).

An individual who was a non-resident of Canada in the year of the acquisition of the principal residence property will no longer be able to automatically add «1» to the number of «principal residence» years in the calculation of the proration as discussed above.

This unreported income can be based on improper claims of the principal residence exemption.

While Quebec does not currently have legislation in place to implement a foreign buyers tax, it says it is monitoring the sale of property to and by foreign purchasers by tracking the locations of their principal residences.

The booming stock market and the $ 500,000 capital gains tax exclusion on the sale of a principal residence play a role, too, says Steve Goddard, RE / MAX — Beach Cities Realty, Manhattan Beach, Calif..

The first hearing is in support of Senate 1521, An Act relative to discharge of indebtedness of principal residence from gross income.

In general, the adjusted tax basis of a principal residence is the cost of the property (i.e., what you paid for the property when you first purchased it), plus amounts paid for capital improvements, less any depreciation and casualty losses claimed for tax purposes.

Tax specialists and policy makers speculate that a possible plan would allow a capped amount to be tax - free on the sale of your principal residence with any proceeds over this amount to be taxed as capital gains in your tax bracket at the time of sale.

This enhancement will ensure you retain your Claims Free Discount when your policy renews after you have had one claim arising out of your principal residence and its contents.