Quote:
Originally Posted by johnsjmc
I,m not in Toronto market either As I see your situation you have depreciated the building for several years now so on sale you will have a significant recapture ,which will be taxed as a capital gain . say you sell for $280 and its undepreciated value is 180 you will owe capital gains on 100 . 100/2 =50 which is added as income to your taxes in the year you sold. I am not an accountant so you might have some other deductions (I vaguely recall a 100k deduction in the 80s (Mulroony years) which you might be able to use if you properly reported it at the time or other rules to apply speak to your tax preparer.
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Thanks John for the input. I am not an accountant either. I may have to consult a tax accountant on this. I think there are two elements of taxation on this but I could stand corrected.
First off there is the capital gain or loss, likely a loss if sold tomorrow which I am not going to do as I have just got new tenants.
If sold for 280 and purchased for 300k then there is the capital loss. The other element is income associated with the use of CCA which impacts paying back when the condo is sold.
I thank you all for your opinions. The last time I phoned a tax accountant he said his rate is the first half hour is free and after that $300 an hour. I should probably do that.