http://disqus.com/by/Shroedingers_Bull/enMon, 18 Jan 2010 00:48:53 -0000http://albertabubble.blogspot.com/2010/01/and-then-theyll-say-they-never-saw-it.html#comment-30186080<p>Hi CC,<br>I've heard you make this claim many times. Just wanted to say that the 2 bedroom suites in your building are listing for $1500/mo, unless you've moved. They were renting for $1500 several months ago as well. Perhaps they aren't advertising their rental decreases?</p><p>They are rental buildings, so I'm not sure how you're arriving at the valuation of $500K, since they aren't for sale...</p><p>And I'd hardly call them luxury. The Condo I rent for $1400 all-in is much nicer, and it's hardly a luxury suite.</p><p></p>Shroedingers_BullMon, 18 Jan 2010 00:48:53 -0000http://albertabubble.blogspot.com/2009/05/weekend-open-thread.html#comment-10724647<p><a href="http://www.cra-arc.gc.ca/E/pub/tp/ti-001/ti-001-e.html" rel="nofollow noopener" target="_blank" title="http://www.cra-arc.gc.ca/E/pub/tp/ti-001/ti-001-e.html"> Good guide on this issue from the CRA </a></p>Shroedingers_BullWed, 10 Jun 2009 20:55:49 -0000http://albertabubble.blogspot.com/2009/05/weekend-open-thread.html#comment-10724397<p>While cherry picking the IT bulletins is great, the reality is that the tax rules are significantly more complex than you're making them out to be...</p><p>First of all, if you own multiple houses and are selling them, even if you only sell one per year, and especially if you haven't lived or vacationed in them, then you are engaged in an 'adventure in the nature of trade'...to quote the actual ITA, rather than an IT bulletin. The income that you receive from these sales is business income according to the CRA and does not qualify for the principal residence exemption.</p><p>Second, you can NOT just sell one house at a time to qualify for the exemption if you own multiple personal residences that you've lived or vacationed in, but rather the exemption is claimed on a per year basis. So if you own two houses and plan to sell both of them, then for any given year you can only claim the exemption on ONE of those houses, regardless of when you sell each one...i.e. if you bought two houses 10 years ago, and sold one after 5 years, then the other this year, you could claim the principal residence exemption for the first one, but then only 5/10 of the exemption on the second.</p><p>This applies to all real property - vacation, residence, or otherwise...the only caveat is that the formula does allow one overlapping year, so you could buy a house in year 1, a second in year 2, then sell the first in year 3 and the second in year 4, for instance...but if you did that, it's very possible that the CRA would classify your income from those sales as business income and you'd be SOL on at least one of them.</p><p>Now it's possible for somebody to get away with claiming the exemption on multiple residences, even if they're flipping...but that means that you're lying to the government and run the risk of a tax audit overturning your claim at some future date. Have fun with that.</p><p>I'd consult a tax attorney or tax accountant familiar with these situations if I were in this situation.</p>Shroedingers_BullWed, 10 Jun 2009 20:44:49 -0000http://albertabubble.blogspot.com/2009/05/weekend-open-thread.html#comment-10386726<p>registering...</p>Shroedingers_BullTue, 02 Jun 2009 10:55:56 -0000