Real Estate

Sale of rental property

  • Last Updated:
  • Sep 24th, 2021 1:28 pm
[OP]
Newbie
Apr 1, 2019
32 posts
28 upvotes

Sale of rental property

Years ago when I first came to Canada, I bought a detached home in Ontario.

My income wasn’t very good back then so I decided to rent the basement to help out financially. A young engineer looked at my basement and counter offered me. He said if I was willing to reduce the rent, he would agree to waive rent receipt. He explained he needed to save for his downpayment.

It turned out that he was also the best candidate (stable job, good references etc..) so I agreed. He stayed for about 3 years and then left. This property has always been my primary residence and I stopped renting it out after he left.

Now I have a new job and would have to move to a different province. I am contemplating to sell my property. Will I be exempted from capital gain tax?

Thanks
Last edited by ucu5009 on Sep 5th, 2021 2:39 pm, edited 2 times in total.
7 replies
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9952 upvotes
Edmonton
Well, you committed tax fraud this far, so might as well keep going.

C
Deal Addict
Jun 18, 2018
1481 posts
933 upvotes
Toronto
The right way to do it would have been to claim the rent & expenses for those years, and to use the square foot of your basement to calculate the capital gains...but since you didn't do that either be honest now and pay hefty fines or just forget it and hope shit doesn't fall back on you.
Sr. Member
May 29, 2012
601 posts
241 upvotes
Southern Ontario
yes you will be exempt.
you've already lied about the rent for 3 years, 0.001% of getting caught now.
Sr. Member
Mar 14, 2018
894 posts
825 upvotes
You can't make this up haha... A tax cheat asking for a tax advice on a public forum
Deal Fanatic
Aug 15, 2015
8885 posts
5351 upvotes
ON
Dear Citizen,

Thank you for self reporting this infraction to the CRA online agents at RFD.
We will be contacting you shortly through one of our officers with thick foreign accent so you can settle this matter before you appear before a court magistrate and a warrant is sent for your arrest by the local police force. Please press 1 to speak to an officer now....1.....

: Haaaaaloooo, dis is officer James Hunt. Mei I have yur naim plees ...
Sr. Member
Mar 14, 2018
894 posts
825 upvotes
dilligafeh wrote: Dear Citizen,

Thank you for self reporting this infraction to the CRA online agents at RFD.
We will be contacting you shortly through one of our officers with thick foreign accent so you can settle this matter before you appear before a court magistrate and a warrant is sent for your arrest by the local police force. Please press 1 to speak to an officer now....1.....

: Haaaaaloooo, dis is officer James Hunt. Mei I have yur naim plees ...
If the scammers were smart enough, they would seriously do something like this. Face With Tears Of Joy
Deal Addict
Apr 27, 2010
3394 posts
1431 upvotes
Toronto
Even if you rent out your basement, it is still your principle residence. It is not a rental property as the rental part is less than 50% of your house. No capital gain tax.
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