Tax Implications

Vancouver Real Estate Update:  We recently had a call from a client who has moved from their principal residence and wants to rent it out. Of course, capital gains tax will become an issue when they decide to sell one day. The tax free portion of the gain will only apply on the value of the property at the time they moved out of their principal residence. Any capital appreciation from that point forward becomes a taxable gain as it is an investment property & no longer their principal residence. Note as well that any rental income above expenses (ie: mortgage, monthly fees etc.) becomes taxable income. Property taxes will increase without the homeowners grant as well. To avoid a potentail accounting mess down the road we would advise that you have your principal residence appraised to establish market value at the time you move out; just call us. If tenants & property management are not your cup of tea; simply call us and we'll help you sell and you can move your equity into a new home.