income tax question

[kittenhart]

My ex used to do the taxes using Quick tax which I know how to use, but now I'm wondering if I should just go to an accountant because there seems to be alot of tax rule changes when you're separated/divorced....I hope I don't get my a$$ taxed off... ::)anyhow, I have a question about income tax on buyout from a marital home. My stbxh bought me out for my half of the house, which tripled in value since we bought it. I used most of the $ as a down payment for a condo so it is locked up and I didn't pay any tax on it....should I be making RRSP contibutions to offset this now? Is that money "income" that gets taxed like other real estate income or what? I live in Canada.

Also, does anyone know of a good tax info website where you can actually find answers to all this crap without having to go spew the whole sob story to some accountant?....no offense to any accountants out there, by the way.

[cdngurl]

Hi kittenhart,

Have you gone to the Canada Revenue Agency site? It's full of guides and very specific information... right from the source!

I really don't believe that it is income though -- I certainly didn't pay tax when I received $$ after selling. I think there is something about capital gains, if you flip a house within a year.. but I'm no accountant. Well - not a certified one anyways - though my job is in accounting.
Definately don't quote me!

[lumpy]

I don't know about Canada, but the $150,000 I got from my house was tax free here in the States. You might want to speak to a tax pro to find out whether or not this is the case in the Great White North.

[cdngurl]

Found it (from CRA site - Disposing of your Principal Residence)

When you sell your home or when you are considered to have sold it, usually you do not have to report the sale on your return and you do not have to pay tax on any gain from the sale. This is the case if the home was your principal residence for every year you owned it.

If your home was not your principal residence for every year that you owned it, you have to report the part of the capital gain on the property that relates to the years for which you did not designate the property as your principal residence. To do this, complete Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust). If you are the legal representative for a deceased person, you can designate a property using Form T1255, Designation of a Property as a Principal Residence by the Legal Representative of a Deceased Individual.

Note
Because your home is considered personal-use property, if you have a loss at the time you sell or are considered to have sold your home, you are not allowed to claim the loss.

[kittenhart]

Thanks so much! The house was my principal residence so looks like I won't have to worry about getting taxed on that....that would have made me even more bitter about being the one to move The CRA site has pretty much everything I need to know, so I can crunch all the numbers myself.