Real Estate

Sale of rental property

  • Last Updated:
  • Sep 12th, 2021 9:43 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.
4 replies
Deal Guru
User avatar
Mar 23, 2008
12636 posts
9242 upvotes
Edmonton
Well, you committed tax fraud this far, so might as well keep going.

C
Deal Addict
Jun 18, 2018
1363 posts
844 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
552 posts
206 upvotes
Southern Ontario
yes you will be exempt.
you've already lied about the rent for 3 years, 0.001% of getting caught now.
Member
Mar 14, 2018
470 posts
476 upvotes
You can't make this up haha... A tax cheat asking for a tax advice on a public forum

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