We have 2 properties. #1 was bought in 1979, #2 in 1996. We separated in 2007 and the husband went to live in property #2. We have been told that Capital Gains is payable on #2 when the property is sold and that no CG will be payable on #1 when it is sold.As we are into the final stages of divorce I want to be sure that no Capital Gains will be payable at any time on #1 as I have paid money towards the gains on #2 as part of the settlement. Please advise and thanks so much. Heidi
Spoken to an accountant and tries reading the capital gains act.
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It appears that property 2 will be partially exempt from CG taxes; you (collectively) should only be liable for the capital gain between 1996 and when he moved into the property.
The calculation is on form T2091; if sold in 2012, and your husband moved into the property, and started using it as his principle residence, in 2007, then approximately 6/16 of the gain is exempt.