Capital Gains

[barleyfarmer]

Anyone on here familiar with how capital gains works on realestate?I have a quarter section that I bought from my mom when dad died for $140 000.I paid what dad did to save her getting dinged with the capital gains and not screw up her pension.We just had some land sell here last week for over $700 000 with a tiny yard and 35 yr double wide on it and my place has a fully serviced yard site with an old house that should be demolished!But the land is nicer than the neighbors that sold but I'm just wondering how much the government would ding me if I sold it!I just love living beside these ultra religious types that will stab each other in the back because of greed!I think I could ask well over $600 000 and would easily get it!

 

[rsaint]

If it is your principal residence 0 capital gains.

 

[rzrgade]

This can be very complex and should be addressed by your acountant/lawyer........Such factors as fair market value when you bought it,have you farmed it ( revenue from property) your capital gains allowance as well as a host of other issues would come into play....

Say Hi to my old buddy Ben Blum,and is old Garth newman still around......?

 

[barleyfarmer]

This can be very complex and should be addressed by your acountant/lawyer........Such factors as fair market value when you bought it,have you farmed it ( revenue from property) your capital gains allowance as well as a host of other issues would come into play....

Say Hi to my old buddy Ben Blum,and is old Garth newman still around......?

Ben lives a mile east of me!Hell of a nice guy!Garth died about 2 years ago and his place sold for about $630 000 last spring and the same guy just bought his brother Ralph's place last week for $700 000!Land up here is just retarded what guys are paying!Land rent is up to$130 an acre!I'm tempted to either sell or rent the ch!t out!

 

[Bnorth]

Not 100% on agricultural land as farmers have many loopholes and tax benefits but the basic rule of thumb is if it's your primary residence then there is no capital gains tax. But you can only claim one primary residence so if you claim it on this property then for that time period ie. from 2002 to 2012 you could not claim another property so if you had something else it could still be your primary residence from 1992-2001 and then from 2013+. If you need to pay capital gains tax then 50% of the capital gain is taxable. Sorry I'm not up on this stuff 100% as I'm a private sector accountant, not public.

 

[crosroads]

We're just going this too. You have 750000 capital gain exemption. As would your wife if your married giving you 1.5 million exemption for everything you do together.

I'm glad I don't farm out your way 130/acre!?!?! Rent. And I thought 65 is lots! If you don't want to farm anymore then I'd rent it out. 130 is more income then farming it yourself. Keep the land I you can, it will just gain in value.

 

[enis750]

Ask your lawyer and your accountant
whats your excuse to CRA if you mess it up.....my buddies on a website told me to do it?

just sayin.....

 

[mathrulz]

Unfortunately farm land does not qualify as a primary residence - even if there is a yard-site on the land you have to assign a fair value to the house/yard and the land separately. Farmers are allowed up to $750,000 in capital gains exemptions over their lifetime providing that they farm (i.e. not rent out) the land for at least 50%+ of the time it has been owned by yourself or your parents, grandparents, etc. Capital gains tax is calculated based on the difference in value divided by 2 (so 50% of the gain). I believe the tax rate on capital gains is then ~17% if I'm not mistaken(?). So in your case - say $600,000 - $140,000 = $460,000 * 50% = $230,000 *17% = ~$39,000 in taxes. Not bad when you consider you just made $460,000.

 

[scotts]

130$ an acre!, yikes that's insane! Where are you at??

 

[snochuk]

Capital gains can be added to transfer of titles as well. We want to turn four of the quarters in the company over to our children as "gifts" but there will be capital gains to be paid. Need an accountant/lawyer to be sure. We justed started so not sure how much we will have to pay to give to our children what we already own? We no happy, system fugged!!!

 

[barleyfarmer]

I'm at Vega northwest of Edmonton about an hour.It is absolutely stupid what land has gone to up here!I have to rent land close 30 miles away to start paying under 70 an acre!I want to expand but I also want my kids to be debt free when I'm gone and also not have every dime I make have 2 or 3 guys waiting for it!If I wasn't so damn sentimental I would just sell the six quarters I got here and buy twice as much somewhere else!But the sledding is just so damn nice here!Leave from my backdoor and hit cutlines all the way to Slave Lake(been there done that)!One of these times my lotto max will come in!!LOL!!

 

[scotts]

Those kind of rent #'s are offside.. If I could get that I'd say take her all boys!!

 

[rzrgade]

Ben is a fine gentleman ,no dought ! I had not heard of Garth passing,sad,he always had some great "stories" to tell.....

 

[barleyfarmer]

Ben is a fine gentleman ,no dought ! I had not heard of Garth passing,sad,he always had some great "stories" to tell.....

I think everyone at one time or another worked for him as a kid!He offered big money but what Martha actually paid you was quite different!!LOL!!