Evaluating your finances as another summer comes to a close at your cottage? You’re not alone. There have been changes recently to the principal residence exemption, so it is a good time to do some estate planning. Remember, “A principal residence can include your vacation property, even if it’s not where you primarily live during the year as long as you, your spouse/common-law partner or your child ordinarily inhabit it at some point during the year.” Keep records of your ACB for appraisal reasons, and if you decide to sell Kawartha Waterfront Realty is here to help you through the process.
Perhaps the biggest tax problem associated with a vacation property is the potential for capital gains tax upon either the sale, or gift of the property, or upon the death of the owner.
Evaluating your finances as another summer comes to a close at your cottage? You’re not alone. There have been changes recently to the principal residence exemption, so it is a good time to do some estate planning. Remember, “A principal residence can include your vacation property, even if it’s not where you primarily live during the year as long as you, your spouse/common-law partner or your child ordinarily inhabit it at some point during the year.” Keep records of your ACB for appraisal reasons, and if you decide to sell Kawartha Waterfront Realty is here to help you through the process.