Quote:
Originally Posted by jinxx123
In terms of capital gains, I've talked to my brother in law who is an accountant and has taken tax courses fairly recently, and he explained it to me this way...
- One Bedroom Condo (bought but unfinished) = Condo A
- Two Bedroom Condo (that we are renting now, hoping to buy) = Condo B
In year 1, we purchase Condo B while waiting for possession of Condo A.
In year 2, we take possession of and sell condo A.
In year 5 (way down the road) we sell Condo B.
In year 1,3,4 & 5 we list Condo B as our primary residence (no secondary residence). In year 2, we list condo A as our primary residence, with condo B as our secondary residence.
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What are you doing with condo B in the year off? Renting it? Somehow I think there will be a deemed disposition or two in there.
But I'm not an accountant so what do I know.