George Dube wrote an excellent article back in May of last year that discussed the complicated tax rules of involuntary disposition of investment properties destroyed by fire. He was referring to the Fort McMurray fires, and the example he used was based on a single-family home. I am trying to figure out how to apply those rules to the loss of our strata unit which occurred last August. It is difficult to ascertain the proceeds of insurance as there were 78 units that were fully or partially destroyed. If anyone has any further information on this, we would be so grateful to hear from you. Thanks very much!
Tax implications for strata property destroyed by fire
- Thread starter nela
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- Aug 30, 2007
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Receipt of revenue/cash matters, not reason for it. Why is a strata different than a house here ?
I think the strata is different because it is shared property. The proceeds of insurance are roughly $10 million divided among 78 units. However, the unit sizes vary between 1 to 3 bedrooms. If it were a house, we would know what the proceeds of insurance would be for our property. With the building insured as a whole, we don't know what the allocation for our unit would be. Thanks for asking.