" If you are expecting two rather large capital gains on both properties I would recommend spacing the transactions out over two years in order to lower your marginal tax rate. Spacing out the transactions will also offer you some opportunity to defer the taxes owing over potentially three years instead of one. Also be sure to utilize the principal residence exemption on the portion of the apartment building that applies to your living area." says Ayana Forward, CFP with Ryan Lamontagne in Ottawa. 

MoneySense, Romana King
August 2016

Q: We own a cottage and a six-plex, which is where we also live full-time. Now we want to sell the apartment building and maybe the cottage and use the funds to buy a new residence in the city. How can we best structure this transition to minimize the capital gains taxes we will owe? — Liz Kargus, Ont.

Full text: A Strategy to Slash Capital Gains Tax


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