Quote:
Originally Posted by Slava
You want to move in for a year and then sell it so that you don’t pay taxes.
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Quote:
Originally Posted by bizaro86
I mean, you always hear that but lottery winnings in Canada aren't taxable - so shouldn't your adjusted cost basis on the new house be its fair market value at the time you win it?
Edited to add: my uncle buys the biggest package on all those lotteries. They won an SUV once about 10-15 years ago but I wouldnt be surprised if they're still behind overall
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Ooh! Tax questions! Interesting. I've never really thought about it because...lets be honest, I aint ever winning nuthin! I think that lottery is rigged! Rigged I tell you!
That being said though...the House itself is technically a 'lottery winning,' and ergo should be tax free, it just happens to be a physical asset rather than cash. Converting a lottery winning into cash via sale shouldnt require a Tax Effect.
Unless the assessed value of the asset was lower than the sale price then the profit could conceivably be taxable as a Capital Gain if no Principle Residency applications were made.
I've never dealt with that scenario. The 'live in it for a year' bit is a myth though, thats A&W Breakfast Advice, but immediately liquidating a lottery won physical asset into cash? Interesting.
If its a car or something, thats no big deal, but a house? That would be an interesting scenario.
I'm sure theres a precedent for that somewhere, but I havent deal with it. I think a case could be made that the cash proceeds were essentially lottery winnings?
There are few things that havent crossed my path, but I'd say this is one of them. You'd think there would be cases of this happening, I've just never heard of them.
But for the record, I always buy Hospital Home lottery tickets and I've never won anything. Still...its a good cause. I wonder how much they make off of that?