Change of mind on condo pre con

liquidsuite wrote: ↑ Hi I wanted to ask I bought a condo in erin mills last year. Original plan was to move there with 2 kids and wife. It was 2 bedrooms. Unfortunately alot has changed. I lost my job due to covid 19 layed off and then been injured on top of that. My job involved alot of travel so condo location was fine. Now I lost job and wife got a job 20min north from where we live in brampton. So now no sense to move down south to erin mills. Wife job is bolton. Condo project is delayed.

I am deciding to move to another home right now in same area little north but not by much. If I sell my condo I know I will be in trouble for capital gains. I want to know would cra be understanding to my situation or they dont care about change of mind. Will I still get charged cap gains. How do I go about to not get charged cap gains if its even possible.

Newuserid wrote: ↑ If you have a capital gain, that is, you sell for more than you bought, you will have to pay tax on the capital gain.

The only way to get around the capital gains is to claim the condo as your principal residence. However, this will require you to keep the condo and live in it for a while and then put it up for sale.

liquidsuite wrote: ↑Hi I wanted to ask I bought a condo in erin mills last year. Original plan was to move there with 2 kids and wife. It was 2 bedrooms. Unfortunately alot has changed. I lost my job due to covid 19 layed off and then been injured on top of that. My job involved alot of travel so condo location was fine. Now I lost job and wife got a job 20min north from where we live in brampton. So now no sense to move down south to erin mills. Wife job is bolton. Condo project is delayed.

I am deciding to move to another home right now in same area little north but not by much. If I sell my condo I know I will be in trouble for capital gains. I want to know would cra be understanding to my situation or they dont care about change of mind. Will I still get charged cap gains. How do I go about to not get charged cap gains if its even possible.

Ziggy007 wrote: ↑ Capital gains can only work out as a net in your favor (meaning it was a profitable transaction).

Why are you so worried about making extra money?

vprime77 wrote: ↑ It sounds like you should consult with a professional - i.e realtor/lawyer/accountant. You do have options...i.e. assign the unit if allowed at this point. There is no set rule from CRA, it depends on the set of circumstances and your history (i.e. do you have a history of buying/selling frequently etc.). If your gain is not that much and you just want to move on then as stated you don't have to worry too much about capital gain. However, there may be some HST implications...but not a huge deal if you aren't making much profit. As I said, consult with a professional as you may not get the right information here to make an informed decision.

freeman93 wrote: ↑ You would have to assign the condo to someone else if it is still being built. Yes, you will pay capital gains tax on 50% of gain.

edit: to answer your above comment, no you don't have to pay tax on your deposit. You only have to pay cap gain tax on 50% of any gain on this investment.

totoromoro wrote: ↑ What are the tax implication on assignment sale, when the original intention was always to make it the primary residence, but for valid reasons (too many delays; work locations changed), you had to assign it? Any official reading materials on this you know of (particurly on that "50% of capital gain")? Is it something you can file taxes on on your own, or it's better to hire an accountant?

freeman93 wrote: ↑ You can file it on your own, however, there has been times where CRA has come after folks stating that the assignment was business income and not capital gains... as the intention was a flip. So it would be important to have evidence to prove that the plan was to live in it, however, circumstances came up requiring you to assign it.

1. So to confirm, if you have the evidences and can prove that situation has changed, then at max you'd get taxed at 50% of the capital gain (instead of 100% of capital gain as if it were a business income)?
2. Do you happen to have any (online) references to file this particular type of claim on your own? I suppose I'm looking for the specific "how". Any help is appreciated!

totoromoro wrote: ↑ Thanks for the insight!

1. So to confirm, if you have the evidences and can prove that situation has changed, then at max you'd get taxed at 50% of the capital gain (instead of 100% of capital gain as if it were a business income)?
2. Do you happen to have any (online) references to file this particular type of claim on your own? I suppose I'm looking for the specific "how". Any help is appreciated!