- Joined
- Jan 9, 2008
- Messages
- 196
I bought a home in the Crowsnest Pass for $75,000 in 2005 and used it as a weekender home. The value shot up to the $240,000 in the recent peak years. I put a $196,800 mortgage on the property to buy other properties. My stepdaughter currently rents this property from me and she has fallen in love with the property and wants to buy it. If sold, I would find a similar property in the area to replace it. Now the problem is paying the capital gains tax and then falling short of buying a similar property in the same price range. What can an investor do to make this kind of deal happen and not have to pay the capital gains????
My suggestion to my stepdaughter was to mortgage another property for me that was similar to what she was buying at a similar price and whenever CRA lets you sell and roll your money into another property without having to pay capital gains tax, we then can transfer titles and in the meantime we could do any upgrades to each other`s properties to put our own marks on them.
That seems like a pretty lame way of having to do things. Then the question arises that if the property is similar, why not leave well enough along and the stepdaughter just go and buy the similar property although not what she wanted, but perhaps doable and avoid creating a capital gains situation in the first place.
Anyone come across this dilemma? Is there a way of making a transaction like this happen without paying the capital gains on the property?
My suggestion to my stepdaughter was to mortgage another property for me that was similar to what she was buying at a similar price and whenever CRA lets you sell and roll your money into another property without having to pay capital gains tax, we then can transfer titles and in the meantime we could do any upgrades to each other`s properties to put our own marks on them.
That seems like a pretty lame way of having to do things. Then the question arises that if the property is similar, why not leave well enough along and the stepdaughter just go and buy the similar property although not what she wanted, but perhaps doable and avoid creating a capital gains situation in the first place.
Anyone come across this dilemma? Is there a way of making a transaction like this happen without paying the capital gains on the property?