Quote:
Originally Posted by Fahrns
My understanding is that most builders have a few 'stock' duplex designs that they build. Obviously you can tweak those to some extent, but you can't completely redesign without spending big bucks on engineering and design.
I started this thread because I'm interested in learning about the money side of things. I.e. What options do builders provide? What are my options with traditional lenders like my bank? Are there other financing options out there? Tax issues? etc...
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For tax the equity you have now is obviously non taxable because it's a principal residence. The total cost of the build would be split in half (assuming both sides are equal) and that would be the cost of the side you sell. The taxable gain would be the difference in cost and selling price (only half is a taxable capital gain)
Another option would be to rent out the other side. In this case you'd have rental income and you could deduct the expenses against this (ie utilities, taxes, mortgage interest for rental portion, etc). CCA could be take as well but you'd need to determine whether it would be worth it