so we are trying to sell our condo, which is our primary residence. we will be dropping the price which will eventually lead to a loss. (buying this place has not really worked out and we really want to get out after staying here for more than 3 years)
can i write off the losses from this transaction with my income? in other words, do i get any tax benefit for the losses i will incur on account of the sale of the condo?
and if i move out into another place, make this an investment property, and sell at a loss... i can probably get the tax benefit????
No, you can not deduct the loss from your income. Because it was your principal residence you will be denied claiming a capital loss.
If you convert to an investment property, the adjusted cost base for determining gain / loss will be the fair market value as of the day you convert it.
It will technically remain a principal residence for taxation purposes until the year end.
No comments:
Post a Comment