FEDERAL HOUSING TAX CHANGES
Multigenerational Home Renovation Tax Credit
Beginning January 21st 2023 the Fedral Government is introducing this new tax credit which will cover up to 15% of the cost of renovations, up to a maximum of $7500 if you are adding a secondary unit in your prime residence for an immediate or extended family member who is a senior or disabled.
Residential Property Flipping Rule
If you purchase a residential property and sell it within 12 months it may be subject to the new Property Flipping Rule. This would mean any profit from the sale of residential real estate (including rental property) within a year would be taxed as business income and ineligible for either the 50 per cent capital gains rate or the current principal residence exemption.
There are however exemptions
- household addition, such as birth, adoption, or care of an elderly parent,
- breakdown of a marriage or common-law partnership,
- threat to personal safety, such as domestic violence,
- change in employment,
- insolvency, or
- involuntary disposition, such as from a natural or human-caused disaster.
For more information CLICK HERE for the British Columbia Real Estate Association Website
Call Garry Voigt, your Langley Realtor at 604 789 2140 if you need more information.
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