Last year I purchased a piece of recreational property, with the intent to build a cabin on it over the course of the next few years. My priorities have now shifted to other sources of investing, and I am researching the option of selling the recreational property. I called CRA and received two conflicting responses as to whether or not I had to pay capital gains on the recreational property. So confused! After researching a bit, I believe I DO have to pay capital gains. Just wanted to verify that.
Also, if that is the case, what can be claimed as capital outlays to offset the gain? Expenses for well being drilled? Lot being cleared? Legal fees to attain lot? Property taxes paid? Interest paid on financing? The Capital Gains Guide doesn`t go into this much detail...
Any help to answer my tax questions would be appreciated.
Thanks,
Mike
Also, if that is the case, what can be claimed as capital outlays to offset the gain? Expenses for well being drilled? Lot being cleared? Legal fees to attain lot? Property taxes paid? Interest paid on financing? The Capital Gains Guide doesn`t go into this much detail...
Any help to answer my tax questions would be appreciated.
Thanks,
Mike