Capital Gain

Principal Residence – Calculations and Exemptions #147

Legally Speaking

By Gerry NeelyB.A. LL.B. A taxpayer bought a home and occupied it as his principal residence for 18 months and then rented one-third of it for 46 months. He then sold the home for a gain of $52,000, which the Minister of National Revenue (MNR) taxed as a capital gain. The taxpayer appealed successfully and

Principal Residence – Exemption or Taxable Gain #131

Legally Speaking

By Gerry Neely B.A. LL.B Where the lands surrounding a principal residence exceed one acre, the excess area only falls within the principal residence exemption if the owner can prove that the excess is necessary to the use and enjoyment of the housing unit as a residence. The standard of proof required of an owner

Capital Gains Tax – Principal Residence #96

Legally Speaking

By Gerry NeelyB.A. LL.B. Following the death of a woman in 1982 who lived on a parcel of land of 6.09 acres, the Department of National Revenue assessed a taxable capital gain of $202,800.00 on the deemed disposition of the property. This assessment was based upon the Department’s contention that only one acre was necessary

Income Tax, Income or Capital Gain #31

Legally Speaking

By Gerry NeelyB.A. LL.B. The intention of the taxpayer as the determinative factor in whether one hundred per cent of the profit realized on the sale of property is taxed as income, or only fifty per cent as capital gain, is described in the following two cases. In the first one, the taxpayer stated that