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Monday, 13 February 2012

Partly Principal Home, Partly Rental, Pay Capital Gain Tax?

Do you need to pay Capital Gain Tax on sale of a Partly Principal Residence with a Rental Suite (eg, a duplex)?

1/  When you sell, you need to split the Capital Gain or Loss between Principal Residence and Rental Suite.

2/  You can do the splitting by using square feet or number of rooms.

3/  Just need to report the Rental Part.

4/  No need to report the Principal Home Part.

5/  For the Rental Part, pay Capital Gain Tax if you gain; claim loss if you lose.

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I am a realtor specializing in the residential properties in the Greater Vancouver, British Columbia. I have been awarded with 15 years top achievement Medallion Award by the Greater Vancouver Real Estate Board.