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
Yeah I do wonder about how CRA would view that, but I haven’t actually looked at it too closely because it’s never been a factor.
I won 6000$ last year off a Stollery lottery. I didn't even know and almost threw it out as it came as a cheque from a travel agency sponsor with no indication what the cheque was for, I had to do some googling to figure out why this travel agency mailed me a cheque lol.
One friend basically becomes a millionaire, another wins a very nice car and you can mix ingredients in a bowl. Damn.
More work acquaintances, but duly noted ha ha. I was happy for the 50/50 winner, he was a super nice guy and had 3 young kids at the time. His wife was still on mat leave. He paid off his mortgage and I think his wife became a stay at home mom after that.
The other guy was a VP. He won a Porsche, but he probably didn't really need the money.
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i remember about a decade ago one of the sports guys from global bc won a dream house.
the draw was done live on air so the sports guy that was live on air called him up to tell him he won
You want to move in for a year and then sell it so that you don’t pay taxes.
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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
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?
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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
Its an interesting thought exercise because you make good points.
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Yah, my understanding is, you don't have to live it for a year. It's considered a lottery winning. So if your house was assessed at $1M, and you sell it for a million, then you don't need to pay taxes.
Now, if it was assessed $1M, and you didn't sell it for a year and it went up to $1.1M, then that $100K is subject to cap gains tax, unless, as you mentioned, you were the one living in it for a year and claimed it as your principle residence.
You want to move in for a year and then sell it so that you don’t pay taxes.
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Yah, my understanding is, you don't have to live it for a year. It's considered a lottery winning. So if your house was assessed at $1M, and you sell it for a million, then you don't need to pay taxes.
Now, if it was assessed $1M, and you didn't sell it for a year and it went up to $1.1M, then that $100K is subject to cap gains tax, unless, as you mentioned, you were the one living in it for a year and claimed it as your principle residence.
That would be my assessment as well.
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A person my wife grew up with won a home lottery. They didnt live in Calgary, didnt want to. They stripped the furnishings it came with out, sold the house, used the money to build a new house on their farm.
Yah, my understanding is, you don't have to live it for a year. It's considered a lottery winning. So if your house was assessed at $1M, and you sell it for a million, then you don't need to pay taxes.
Now, if it was assessed $1M, and you didn't sell it for a year and it went up to $1.1M, then that $100K is subject to cap gains tax, unless, as you mentioned, you were the one living in it for a year and claimed it as your principle residence.
My understanding was that all lottery winnings for residents of Canada are non-taxable. Obviously if you're doing something like trying to hide employment income as a "lottery win" that'll cause issues.
My understanding was that all lottery winnings for residents of Canada are non-taxable. Obviously if you're doing something like trying to hide employment income as a "lottery win" that'll cause issues.
Yes. Obviously. But I dont see where he said that.
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I won some camping gear one year. And then a gift card I think it was another year. I forgot to pick up the gift card.
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Didn't a former Calgary radio host (Roger Rhodes) win a house about a decade or two ago?
I won a luggage set.
Also won a firepit but we never picked it up.
Yes, I hear you fellow CP'ers. I won a truck back in 2018, but couldn't be bothered to drive 20 mins to the pick up location. This is CP, we earn too much and don't have time to pick up free prizes, only scroll CP for hours on end.
This could be a gear grinder post but it could make for a good thread. I’ve never won a damn thing. Like not even the entry level most basic prizes. None of my co workers who have been buying tickets for years have won either. In fact the only people ive ever known to win was my parents in the 90s who won tickets to a dinner theater. That’s literally it.
If it wasn’t for the money going to a good cause I would have stopped buying tickets years ago.
Anyone here ever win something half decent?
Only thing we’ve ever “Won” was a Sony Zune. I regretted driving to pick it up.
I've won twice, a bluetooth stereo thing and luggage.
If I ever win the house, I'd sell it immediatly because they are always in some far away land close to Lethbridge. I wonder if they have some backdoor clause where you can just take the cash instead.
