question about selling house in canada....
 

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 ?

any1 ?

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

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

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

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.

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

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)

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...

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.

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.

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.

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.

Try these calculations to give yourself an estimate.

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