Canada Tax Questions Answered by Experts
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?
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.
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?
Who declared the rental income?
And he did this even win the title was in your name?
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.