Canada Tax

Canada tax questions answered by Experts

Ask an Expert,
Get an Answer ASAP!

Purchased property in 1978. Apartment attached to the main…

Customer Question
Purchased property in 1978 for...
Purchased property in 1978 for 59K. Apartment attached to the main house we claimed 25% expenses. We built a new double garage plus loft and a downstairs bathroom. Approx. cot 40K. Also purchased the lot initially part of the house property for 15K. In approx. 1980 changed the title of the house from my husband/wife to wife only, since my husband had started a business and did not want the house in both our names if someone would sue for something in his business... We sold the home for 300K. Whit an income gross of 70K (wife only income), what would be the implications of tax to be paid on capital gains.
Submitted: 2 years ago.Category: Canada Tax
Show More
Show Less
Ask Your Own Canada Tax Question
Answered in 5 minutes by:
1/17/2016
Canadian Tax Expert: Stephen G., Sr Income Tax Expert replied 2 years ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Canada Tax
Satisfied Customers: 7,468
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Did you live in this property as your primary residence?

Did you rent the apartment? If so, did you rent it within the last 5 years?

When did you sell the home in 2015.

What is in your income of 70K? Does it included Social Security?

What about deductions, can you itemize or do you use the standard deduction?

What were your ages in 2015?

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
I did not mention that the expenses on the attached apt to the main house was always shown on my husband's income tax.
Customer reply replied 2 years ago
primary residence
Yes rented the apartment. Was rented from 1978 at time of purchase to selling in 2015. 25% of repairs allocated to apartment and shown on my husband's income tax.
April 2015 sale of house
Income includes OAS & CPP and Company Pension
Standard deductions
74 (husband) 68 wife
Canadian Tax Expert: Stephen G., Sr Income Tax Expert replied 2 years ago

I apologize, I'll have to opt out & let another expert answer. When I went to check on what state you are in, I noted that you are in Canada. Your question was categorized in the Capital Gains category, but didn't indicate you were in Canada. The other expert will need the information you provided anyway, so no problem. Sorry. Steve g.

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
We are located in Canada Province of Ontario. If you cannot answer my questions I would like my refund of charge....Tks
Canadian Tax Expert: Legal Ease, Lawyer replied 2 years ago
Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 105,068
Experience: Lawyer
Verified

I amlocated in Canada and I'm happy to assist you.

What portion of the total square footage of the home does the apartment to take up?

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
we have five bedrooms in main house and they have 1 bedroom small unit, which we considered being 1/4 of the house which was approx. 3000 sq ft.
Customer reply replied 2 years ago
Even though our house was in my name he still when doing his income tax put the expenses of the apartment on his tax return.
Canadian Tax Expert: Legal Ease, Lawyer replied 2 years ago

Who declared the rental income?

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
My husband declared the income and expenses on the small one bedroom apt.
Canadian Tax Expert: Legal Ease, Lawyer replied 2 years ago

And he did this even win the title was in your name?

Ask Your Own Canada Tax Question
Customer reply replied 2 years ago
he did.
Canadian Tax Expert: Legal Ease, Lawyer replied 2 years ago

This is a bit complicated as frankly what your spouse did has created a bit of a mess. The house is not his and so the rental income and expenses should not have been declared by him.

This may come back to haunt you both now so really instead of proceeding on your own it would be much more prudent to retain a charted accountant to do your tax returns at least for this year.

In terms of the capital gains if your 25% calculation is accurate then the capital gains tax would be calculated based on the increase in value of the home over the years you owned it but 75% of that amount would be exempt as it was your principal residence. Then 1/2 of that amount would be included as your income for tax purposes.

But unfortunately, this becomes even more complex because you spouse was to have paid some capital gains tax when he transferred his ownership to you back in 1980.

I am happy to clarify anything you don't understand but the bot***** *****ne is after that you really do need to retain an accountant to help straighten out the mistakes that have been made.

Ask Your Own Canada Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a canadian tax expertLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Legal Ease Your Own Question
Legal Ease
Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 105,068
105,068 Satisfied Customers
Experience: Lawyer

Legal Ease is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Arthur Rubin

Arthur Rubin

Tax Preparer

35 satisfied customers

Tax preparer with 23 years experience, including US/Canada tax returns.

Legal Ease

Legal Ease

Lawyer

105,068 satisfied customers

Lawyer

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,511 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,562 satisfied customers

15years with H & R Block. Divisional leader, Instructor

< Previous | Next >

Related Canada Tax Questions
Do you deal with Canadian tax problem? yes...and revenue
deals with tax years 2006 to 2008, not filing returns but still paying taxes … read more
taxmanrog
taxmanrog
Master\u0027s Degree
969 satisfied customers
I am a member of the Canadian military and have been for 18
Hello, I am a member of the Canadian military and have been for 18 yrs. My wife and I were married for 14 yrs and are now getting a divorce. She is entitled to 1/2 my pension for the 14 yrs we were to… read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
I would like to know if one gets a pension from Germnay or
I would like to know if one gets a pension from Germnay or Austria how do we pay tax on the to the Canadian government thank you … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,562 satisfied customers
Have been bankrupt since Feb 2013, but the trustee resigned
have been bankrupt since Feb 2013, but the trustee resigned so now creditors are calling again. The one big problem is CRA who said thay are going to take my pension at the end of Junje. That is my on… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I have an arithmetic question. I am splitting some RRSPs. I
I have an arithmetic question. I am splitting some RRSPs. … read more
BusinessTutor
BusinessTutor
Foundation classes for MBA
531 satisfied customers
How do I find the form for preparing your GST with the qhick
How do I find the form for preparing your GST with the qhick method of accounting … read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
148 satisfied customers
I have started an ecommerce business designing and selling
I have started an ecommerce business designing and selling accessories + apparel. Should I be collecting taxes on these sales? and how much money do I have to be making to pay business tax. I am very … read more
abci168
abci168
Principal
27 satisfied customers
On April 10, I sent in a tax return for my sister who was
On April 10, I sent in a tax return for my sister who was deceased. the first return was for jan 2017 and they would not take it on the computer as she was deceased. As well, I sent along the estate r… read more
taxmanrog
taxmanrog
Master\u0027s Degree
969 satisfied customers
What would happen if someone did not have available funds
What would happen if someone did not have available funds to … read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
I've had my land for over 50 years. I sold 5 1/4 sections
I've had my land for over 50 years. I sold 5 1/4 sections They said grandfather clause didn't apply. So they made me pay $32000. Capital gains. WHY. … read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
For a rental property, we have had to install a rock wall to
For a rental property, we have had to install a rock wall to stop erosion. I this qualify for CCA deductions? If so, at what percentage? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If a Canadian lends an American money, are the interest
If a Canadian lends an American money, are the interest payments on the loan something that requires the Canadian to pay us taxes or just Canadian taxes?… read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
My tax preparer sent in our T!'s. However the amount tax we
my tax preparer sent in our T!'s. However the amount tax we owe (my wife and I) was sent to CRA in Toronto by his office staff. Now CRA can' find the cheques and in their assessment is threatening all… read more
CharteredAccountant
CharteredAccountant
Partner
Chartered Accountant
1 satisfied customers
I work in USA but am a permanent resident of Canada. I pay
I work in USA but am a permanent resident of Canada. I pay the USA taxation. Why does Canada Revenue double charge taxes even though i pay the IRS & USA State taxes? I figure it would just be for the … read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
I got my Canadian residency 20 years ago and I lived there
I got my Canadian residency 20 years ago and I lived there for about two years before moving to the US 18 years ago for work on the work visa. Last year I got my green card to the US. My Canadian PR C… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,562 satisfied customers
My name is ****** May and I have a question for you. I am
My name is ****** May and I have a question for you. I am currently receiving CPP disability and LTD from an insurance company. I recently filed my income tax and in doing so realized that I was suppo… read more
Legal Ease
Legal Ease
Lawyer
105,068 satisfied customers
I would love to know what the average middle class pays on
I would love to know what the average middle class pay's on income tax, say average income of $60,000 p/yr, and how many would there be?… read more
FitnessSpecialist
FitnessSpecialist
Master\u0027s Degree
250 satisfied customers
I WANT TO FILE MY OWN TAX SEPARATELY. I CAN FILE? NOT YET. I
I AM SEPARATED AND I WANT TO FILE MY OWN TAX SEPARATELY. I CAN FILE? … read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
148 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x