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TFSA contribution room calculator + MORE Apr 8th
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
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Tax-free savings account is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like e.... More »
The 7 best student credit cards in Canada for July 2023 + MORE Jul 10th
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The 7 best student credit cards in Canada for July 2023
Searching for the perfect credit card? In under 60 seconds, CardFinder narrows down your top matches without impacting your credit score, no SIN required.
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Where to find a home under $1 million in Canada + MORE Sep 4th
If you figured you’d never be able to buy a home in Canada, we have some good news: home prices have been stalled or falling in most of the country’s major markets over the past two years. Mortgage rates are higher than they were five years ago, which affects the size of monthly payments, but th.... More »
Inflation a scourge for retirees? Ottawa’s silver lining(s) + MORE Dec 20th
While inflation and taxes are both major scourges for retirees, there’s a silver lining in how the two interact. That’s because the federal government builds in a degree of inflation-indexing to tax brackets, retirement vehicle contribution room and major retirement programs like the Canada Pens.... More »
Brampton man facing fraud charge, 2 lawsuits as alleged real estate deposit scam collapses - CBC May 13th
Brampton man facing fraud charge, 2 lawsuits as alleged real estate deposit scam collapses CBC.... More »
This week, our question comes from 23-year-old Lea. She asks, “What are some basics on entering the stock market and investing in stocks for a first-timer?”Understanding the 1994 capital gains tax election
– moneysense.ca
I built my cottage in 1992 and did not know about the CRA T664 (election of claim eliminating capital gain up to $100,000 for future increase in value). I knew nothing about this for income purposes at the time; can I still make a claim?
Also, who determines fair market value (FMV)—do you just look at comparable properties yourself and pick one? Do you get a real estate agent to assess it?
–John
What is the CRA form T664?
It sounds like you have done some research on this capital gains exemption, John, or at least received a bit of advice from someone. I will tell you right off the bat that there seems to be a slight misunderstanding about how the 1994 tax exemption for capital gains works.
Form T664 was a tax form used to make an Election to Report a Capital Gain on Property Owned at the End of February 22, 1994. In 1985, a $500,000 capital gains exemption was introduced for Canadians that was subsequently decreased to $100,000 in 1988. The exemption was repealed in 1994, although a lifetime capital gains exemption remained for the sale of qualified small business corporation shares and qualified farm properties…
Also, who determines fair market value (FMV)—do you just look at comparable properties yourself and pick one? Do you get a real estate agent to assess it?
–John
What is the CRA form T664?
It sounds like you have done some research on this capital gains exemption, John, or at least received a bit of advice from someone. I will tell you right off the bat that there seems to be a slight misunderstanding about how the 1994 tax exemption for capital gains works.
Form T664 was a tax form used to make an Election to Report a Capital Gain on Property Owned at the End of February 22, 1994. In 1985, a $500,000 capital gains exemption was introduced for Canadians that was subsequently decreased to $100,000 in 1988. The exemption was repealed in 1994, although a lifetime capital gains exemption remained for the sale of qualified small business corporation shares and qualified farm properties…
We spoke to experienced real estate experts to find five tactics that will give you the upper hand in your next property bidding war.
