question about selling house in canada....

**qwe** · 08-26-2005, 03:27 PM

any1 ?

**ravo** · 08-26-2005, 04:23 PM

Is it your "principal residence"? If so, there are no tax implications. But, with anything, see a lawyer for the right answers.

**sonofsam** · 08-26-2005, 04:24 PM

for a sale of 400 grand + i think it would be in your best interest to consult with an accountant/lawyer

**the Shemp** · 08-26-2005, 04:27 PM

Originally posted by qwe

lets say I bought a house 4 months ago in ontario, and now I want to sell it and get a bigger house, is there anything I need to watch out for, like pay some taxes or something ? heard I need to wait a year before I can sell ?

basically can I sell and buy without getting hassled about taxes or what not ?

sounds like a "flip" ..........did you live in the house?

**evildick** · 08-26-2005, 04:27 PM

Principal residence is OK. If you own another home you better hire an accountant and lawyer to make sure you don't get fuxored by the tax man.

**NoCarrier** · 08-26-2005, 04:31 PM

Depending on your bank, you might a penalty with your mortgage.

**evildick** · 08-26-2005, 04:34 PM

I also think there is a taxable gain limit of $250,000, even if it was your principal residence. So if the property rose in value over $250,000 since you purchased it 4 months ago (which is unlikely, unless you have a horseshoe up your ass), then you have to pay tax on that. (or over $500,000 if you are married and filing joint returns)

**qwe** · 08-26-2005, 05:49 PM

Originally posted by the Shemp

sounds like a "flip" ..........did you live in the house?

it's not a flip... ya i only own 1 and only house which is this one... there won't be much gain since i'll sell it to my parents.... I simply want bigger one...

**qwe** · 08-26-2005, 05:51 PM

Originally posted by NoCarrier

Depending on your bank, you might a penalty with your mortgage.

why penalty, I will simply increase mortgage, don't it mean more business to the bank ?

**NoCarrier** · 08-26-2005, 05:57 PM

Originally posted by qwe

why penalty, I will simply increase mortgage, don't it mean more business to the bank ?

Well, you are going to pay off your 1st mortgage faster than usual, most banks will give you a penatly fee.

**Doctor Dre** · 08-26-2005, 05:58 PM

There are no official "laws" agaisn't it (I heard ... from my financial advisor), but the problem will probably with re-financing since banks made rules that block "flips" as much as possible.

**Doctor Dre** · 08-26-2005, 05:58 PM

Originally posted by NoCarrier

Well, you are going to pay off your 1st mortgage faster than usual, most banks will give you a penatly fee.

With most banks you can repay as much as 15 % of the total mortgage every year without penality nowdays...

**NoCarrier** · 08-26-2005, 06:10 PM

Originally posted by Doctor Dre

With most banks you can repay as much as 15 % of the total mortgage every year without penality nowdays...

You are right, but he wants to sell the house that he bought 4 months ago, now. The "as much as 15%" does not apply here. He will get a penalty. All he needs to do is sell the house at a higher price so he will get his money back.

**qwe** · 08-27-2005, 07:46 AM

how much is the penalty we talking about ?

**evildick** · 08-27-2005, 08:23 AM

Originally posted by qwe

how much is the penalty we talking about ?

You have to ask your bank that, but you are probably looking at MINIMUM 3 months interest. Probably a lot more than that.

**evildick** · 08-27-2005, 08:25 AM

Try these calculations to give yourself an estimate.

http://www.fcac-acfc.gc.ca/eng/publi...yCharges_e.asp

question about selling house in canada....

question about selling house in canada....

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