The new “flipped property” rules in subsection 12(12) to (14) appear to apply in perverse ways. Suppose a taxpayer transfers a home to a corporation on a rollover basis and the corporation then sells the home within the “bright line…
Happy Valley applied
Happy Valley Farms Ltd. v MNR, 2 CTC 259, provides a handy list of the factors a court will generally consider in deciding whether a gain realized on the sale of a home was on income account. The Court…
PRE and Trusts
Jack Bernstein and Robert Santia, “Principal Residence Exemption: Trusts and Non-Residents”, Canadian Tax Highlights 25:2 (February 2017) comments on the rules now applicable to the principal residence exemption (the PRE) where a trust owns the residence. After 2016, only certain…
Get that divorce!
In Balanko Estate v R, 2015 TCC 66, an informal procedure case, the taxpayer could not claim the principal residence exemption for a property because she had never divorced her husband, from whom she had been living separate and apart…
45(3) elections and the principal residence exemption
If you buy a home and then change its use, should you always file the 45(3) election to defer any gain? Maybe not, according to James Painter, “Principal-Residence Tax-Deferral Election May Be Inadvisable” (Feb 2016) 6:1 Canadian Tax Focus. Mr…