Is the sale of a multi-generational house taxable considering the fact that it includes more than one dwelling?
Intergenerational homes are becoming increasingly popular, and as they have more than one dwelling, is their resale subject to taxation?
A couple purchases, in a single sales transaction, two semi-detached bungalows built on a single lot. They move in with their two children. An opening between the two bungalows allows family members to access them without having to go outside. Six years go by. The couple subdivides the property into two lots and sells the bungalows separately. The Revenu Québec agency, considering that the residence consists of two separate housing units, assesses the couple for over $29,000. The couple appeals to the Court and argues that they are exempt from capital gains since it was their principal residence. The couple bases their claims on the following:
The court, in response to the arguments presented by both parties, bases its decision on the following:
The Court ruled in favor of the taxpayers because, despite the existence of certain facts, they managed to demonstrate their rights. As Flaute said, "the facts speak for themselves".
*CA 700-80-005176-117
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