was doing some research and seeing that I can finish my basement + side entrance without making it a legal seperate apartment?
May 18th, 2018 10:28 am
May 18th, 2018 11:48 am
This is true, or don't complete one electrical wall socket/plug, which also means it's not "finished". However, here in Winnipeg, finished basements are never included in the listed square footage of a home.
May 18th, 2018 12:02 pm
Just because something isn't included in the "listed square footage" doesn't mean it can't increase your assessed property value...
May 18th, 2018 12:07 pm
May 18th, 2018 10:45 pm
May 18th, 2018 11:08 pm
May 19th, 2018 1:40 pm
DaveTheDude wrote: ↑May 18th, 2018 11:08 pmI assume you have considered the income tax implications of a separate entrance structural change to create a rental unit. Meaning that part of your property would now be subject to capital gains tax if a separate entrance is created. Whereas if no separate entrance it would be considered part of your principal residence and exempt.
May 19th, 2018 1:42 pm
How would they even know, if you don't claim it? You can always say it's your brother living downstairs for free. As long as there is other way to access that apartment from inside you are fine. There are thousands of houses with separate /side entrance and I never heard about income tax implications. Property tax is a different story.DaveTheDude wrote: ↑I assume you have considered the income tax implications of a separate entrance structural change to create a rental unit. Meaning that part of your property would now be subject to capital gains tax if a separate entrance is created. Whereas if no separate entrance it would be considered part of your principal residence and exempt.
May 19th, 2018 1:47 pm
May 19th, 2018 2:14 pm
Laughing here as “you don’t know what you don’t know”.
May 19th, 2018 2:28 pm
DaveTheDude wrote: ↑May 19th, 2018 2:14 pmLaughing here as “you don’t know what you don’t know”.
A structual change that creates a rental property makes it subject to capital gains tax. You can choose to evade the issue risking the new CRA $8K penalty for failure to report. But before you laugh it off do a quick google search. I would post references but you seem not to care.
May 19th, 2018 2:40 pm
It is disappointing to hear you are a tax professional. I would have expected more from a fellow CPA. Obviously you are not up to date on the new reporting requirements for principal residence change of use. The no CCA requirement is only applicable if there is no structural change.ssj4_ootaku1 wrote: ↑May 19th, 2018 2:28 pmYes, i'm going to laugh it off. Trust me, i know WAYYYY more than you on this. Tax is my profession, I do this for a living.
Again, it doesn't NECESSARILY make the house subject to capital gains tax. You have to claim CCA on the property for it to be fall under cap tax. If you do not claim CCA, there is no cap tax as long as the other part of the property is your principal residence and you can file a simple for to exclude capital gains.
Please don't google information, read the actual income tax act book, which gives you all of this information.
Stop giving out incorrect information.
May 19th, 2018 11:13 pm
How would that effect anything? If they came in to assess and they saw a finished basement, do you think saying “no no, it’s not finished! I didn’t do this one plug!” Would change your home value in any way? Plus, you need a permit for pretty much everything and you need to close those permits for a legal apartment.