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Sell property A and transfer the mortgage to Property B by paying 3 months interest penalty , you can still keep low fixed rate on property B
Assuming both principal balance is almost same, location has same demand, age is similar etcc

Also no capital gains

Lavaris1 wrote: ↑ Sell property A and transfer the mortgage to Property B by paying 3 months interest penalty
Assuming both principal balance is almost same, location has same demand, age is similar etcc

Also no capital gains

Interesting. I thought you could only port mortgage to a 'new' property and not an existing one? At least that's what I remember from the last time I talked to RMG.

How is property A still a principal residence if it's a rental? Capital gains exemption should only be for years it was principal residence +1?

And I think you should keep both properties.

Silly question… The answer is always buy property C.

Singh_21 wrote: ↑ How is property A still a principal residence if it's a rental? Capital gains exemption should only be for years it was principal residence +1?

If the OP doesn't have another principal residence they own they can file a 45(2) tax election to deem Prop A their principal residence for an additional four years even though now rented. As they previously resided in Prop A.

DaveTheDude wrote: ↑ If the OP doesn't have another principal residence they own they can file a 45(2) tax election to deem Prop A their principal residence for an additional four years. As they previously resided in Prop A.

Yes 4 years+ 1. I have filed that election before but it only works if you don't have a principal residence elsewhere. and it's only good for 5 years and then capital gains for years after that.

Leaving out a lot of important info. What’s the balance on the mortgage, current value, etc. are both freehold?

With just the info provided I’d sell the one that is capital gains exempt. But… why not keep both?

JayLove06 wrote: ↑ Leaving out a lot of important info. What’s the balance on the mortgage, current value, etc. are both freehold?

With just the info provided I’d sell the one that is capital gains exempt. But… why not keep both?

As I mentioned, they both have about $100k equity each and both are townhouse condo. I want to sell one which is why I want to get some opinions/suggestions.

I wouldn't sell. Especially in this market. I would buy another one.

sircheersa wrote: ↑ Also for the first property you still owe capital gains tax for a proportionate amount of time that it was a rental.

Assuming the OP filed the tax election mentioned above that gives them another four years exemption from capital gains tax even though rented out.

sircheersa wrote: ↑ I'm not very familiar with that but my understanding was that it would just defer the tax and not exempt you from it. You can delay the disposition and defer the tax bill 4 years but I thought you couldn't avoid it.

The election allows you to defer reporting the change in use disposition until the property is actually sold. When calculating any capital gain on final sale it also gives you an additional 4 years to claim the exemption when rented.