| possession of a new house - Click HERE for Original Thread |
| Seks |
My new house is almost done and I'll be taking possession of it towards the end of this month. On the purchase agreement/contract with the builder, my name and my father's name are in there. That was required since my mortgage had to be cosigned by him.
I may end up moving to some other city within the next 6-8 months. If I sell before the 6 months, do I have to pay taxes on capital gains since my dad's name is attached to it and he already has a house? |
|
|
| TrevorK |
You would not be charged with any capital gains as it is your primary residence.
Your father would be best off consulting a lawyer specializing in tax/accountant for his end of things. In the meantime, you can browse the CRA site, starting here:
http://www.cra-arc.gc.ca/tax/indivi...ate/menu-e.html
I think what it comes down to is whether your father is the owner of the home. I would assume (I never got a traditional mortgage so I'm unfamiliar with the paperwork) that someone who is just a co-signer on the mortgage is not necessarily on the title, they are just liable for the debt if you don't pay. If that's the scenario then your father never owned the home, he only assumes the debt if you choose not to pay and therefore would owe no capital gains because he didn't own anything to sell.
Regardless of what you find, when dealing with a tax bill that may be in the ten's of thousands you should seek the advice of professionals. |
|
|
| GOT BOOST |
quote:
Originally posted by TrevorK
You would not be charged with any capital gains as it is your primary residence.
Your father would be best off consulting a lawyer specializing in tax/accountant for his end of things. In the meantime, you can browse the CRA site, starting here:
http://www.cra-arc.gc.ca/tax/indivi...ate/menu-e.html
I think what it comes down to is whether your father is the owner of the home. I would assume (I never got a traditional mortgage so I'm unfamiliar with the paperwork) that someone who is just a co-signer on the mortgage is not necessarily on the title, they are just liable for the debt if you don't pay. If that's the scenario then your father never owned the home, he only assumes the debt if you choose not to pay and therefore would owe no capital gains because he didn't own anything to sell.
Regardless of what you find, when dealing with a tax bill that may be in the ten's of thousands you should seek the advice of professionals.
I second TrevorK on this one.
Mike |
|
|
|
|
|
