Real Estate

Principal Residence

  • Last Updated:
  • Feb 14th, 2020 3:20 pm
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[OP]
Member
Oct 31, 2009
468 posts
30 upvotes

Principal Residence

Hi All,

Apologies if it has been ask before. Let's say you work in BC and renting. But planning to buy a property in Alberta and have it rented. Will your property in Alberta be considered as your primary residence? Many thanks.
8 replies
Deal Addict
Aug 30, 2011
3367 posts
1085 upvotes
Ottawa
desertfox wrote: Hi All,

Apologies if it has been ask before. Let's say you work in BC and renting. But planning to buy a property in Alberta and have it rented. Will your property in Alberta be considered as your primary residence? Many thanks.
No. You must actually live in it, as your principal residence. The link posted by senasena is of no use to you, as you are not living there, and (based on the information you provide) you do not plan to move there and live in that house as your home.
When you change your principal residence to an income producing property, such as a rental or business property, you can make an election...
[OP]
Member
Oct 31, 2009
468 posts
30 upvotes
Thank you both for your replies. Here's where we at: Our daughter is studying in Alberta and she has said that she might stay in Alberta and work. Currently wife and I both working in BC and renting but visits Alberta 2-3 a year. Will it still not be considered a primary residence? Thanks.
Deal Addict
Apr 5, 2016
3867 posts
2500 upvotes
Calgary/Vancouver
If you want to save on investment taxes, just gift the property to your daughter to live as principal residence. If she chooses not to stay in Alberta, then just convert it to investment property.
Current Fido customer.
Ex Koodo customer.
Sr. Member
Jun 7, 2017
792 posts
556 upvotes
BC
bomber17 wrote: If you want to save on investment taxes, just gift the property to your daughter to live as principal residence. If she chooses not to stay in Alberta, then just convert it to investment property.
Can you please clarify? Are you suggesting OP buy the Alberta property and gift that to the daughter? That would be a deemed disposition at FMV for the OP, triggering either a cap gain or more likely or possibly income.
Deal Addict
Apr 5, 2016
3867 posts
2500 upvotes
Calgary/Vancouver
Furcorn wrote: Can you please clarify? Are you suggesting OP buy the Alberta property and gift that to the daughter? That would be a deemed disposition at FMV for the OP, triggering either a cap gain or more likely or possibly income.
Well actually since he didn't buy the property yet, he can just purchase it under his daughter name.

Yes he'll be taxed for the difference in FMV, which won't be too bad if purchase wasn't that long plus alberta property values been pretty stagnant.
Current Fido customer.
Ex Koodo customer.

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