Real Estate Trade

[gcarrow]

Hi everyone out there! I purchased a townhouse in Victoria in me pre-REIN days and it does not fit my model or strategy for investing. I was wondering about offering it for trade for property in Alberta, has any one done this? Does anyone know the tax implications?
Thanks,
Geoff

 

[Tammy]

From a tax perspective CRA will view the exchange of properties as the same thing as selling your property in Victoria and purchasing a property in Alberta. This means that if your Victoria property has gone up in value you will have to pay tax.

If the property has gone down in value and you are exchanging the property with a non-arm`s length person (like a family member) CRA may not allow you to claim the loss on the property.

CRA calls these type of exchanges "Barter Transactions". Here is more info if you are interested:
http://www.cra-arc.gc.ca/E/pub/tp/it490/it490-e.html

 

[gcarrow]

Tammy, thank you so much for your post... that is exactly the kind of information I need to hear! I love the REIN forum!! Anyone else out there with experience at this or comments?
Thanks,
G.

 

[Phantomtib]

I`m interested in your property. Could you send me more details? aerialinvestments(att)gmail(dott)com -replace att and dott

 

[BarryMcGuire]

The real estate contract ( offer )is a little tricky to write up. Altho its described as a " trade " , you are really buying and selling and all of the usual buying and selling issues need to be considered and taken care of in your contract(s). You might work out a ` practice ` trade and try to write up the contract(s). Also good to discuss with your lawyer before you really get started.

Cheers

Barry