# (Ufile) Selling principal residence 5 years after moving out�



## arcticdude

*(Ufile) Selling principal residence 5 years after moving out…*

I sold a real estate property this past Summer. It had been my principal residence from the purchase date in 1991 till 2006 (15 years). I relocated my principal residence, to another province in 2007, but the real estate sat unoccupied (with much of it's furnishings & personal objects) till last Summer. I found a buyer for the property and I took the Summer off to go and empty the home and collect my personal items.
Can I deduct the travel/moving costs/expenses I incurred in emptying the house for the sale, and the expense of bringing my personal items (finally) to my new location?
Also, I should only be paying capital gains on the property value increase for the last 5 years of ownership that occured after 2006 (till the sale in 2011). Right? 
follow up question...How about all of the property tax & utilities I paid while the property was empty, after I moved out and before I sold?...claimable against capital gains?


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## kcowan

The deduction for moving relates to why you moved (i.e. to get a new job). CRA are pretty hard on deducting after the fact (i.e. not in 2006/7).

As for the PR deduction, you could spin it that the move to work was temporary, hoping to find employment back near your home all along. I would get a tax accountant to give you advice. It will be treated as a special case and so needs to withstand close scrutiny by the CRA.


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## arcticdude

Thanks for the reply...I guess I'll just swallow the emptying/moving expenses. I can write off the notary costs though, right?! Do I subtract those expenses from the capital gains I declare (the last 5 years), or subtract the expenses from the full selling price and *then* calculate the capital gains? I know which one I'd prefer! Anyone familiar with Ufile know where/how to enter this info into the process?


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## 44545

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/q/q1-eng.html

From CRA form T1A:
http://www.cra-arc.gc.ca/E/pbg/tf/t1-m/



> *Expenses you paid in a year after you moved*
> If your moving expenses were paid in a year after the year of your
> move, you can claim them on your return for the year you paid
> them against employment or self-employment income earned at the
> new work location.
> 
> The same possibility is also extended to students reporting a
> taxable amount of scholarships, fellowships, bursaries, certain
> prizes, and research grants.
> 
> This may apply if your old residence did not sell until after the year
> of your move. If this is the case, we may ask you to submit this form
> with the receipts and explain the delay in selling your home.
> 
> However, you *cannot carry back *moving expenses *to a previous
> year*. For example, if you paid moving expenses in 2012 for a move
> that occurred in 2011, you cannot claim the expenses paid in 2012
> on your 2011 return, even if you earned employment income,
> self-employment income, or received a taxable amount of
> scholarships, fellowships, bursaries, certain prizes, and research
> grants at the new location in 2011.


If you're unsure, talk to an accountant but I don't see a specific prohibition to claiming your later moving expenses, only that you can't claim them in a previous tax year.


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## arcticdude

Well, it was definitely an income related move...interesting...So I could deduct the moving expenses against my income, rather than against the capital gains on the sale...hmmm...I'll try putting the numbers in for this year and seeing what it gives me. Can I deduct my travel costs? plane/train tickets...gas...to get to the old property and back? I couldn't pack up all of my stuff if I didn't travel there & back...


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## Charlie

If you moved in 2007, your moving expenses are deductible in 2007 or 2008 and only against income in the new place.

There may be some wiggle room on the years you can designate the home as your principal residence. See para 5 of the IT bulletin:

http://www.cra-arc.gc.ca/E/pub/tp/it120r6/it120r6-e.pdf

You can reduce the proceeds by your fix up costs and costs to prep for sale. Travel costs might be pushing it...the costs to sell it and prep it for sale are OK -- your personal costs for cleaning up your mess are on your dime.


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## arcticdude

Thanks. That's pretty clear!


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## OhGreatGuru

As this was never an income property, the FMV in 2007 (and therefore the actual gain in value between 2007 and 2011) are irrelevant. Your capital gain is based on your purchase price and net selling price, and the principle residence exemption is prorated for the number of years it was your principle residence. See Chapt. 6 of T4037 and Form T2091.

AFAIK taxes and utilities are not capital expenditures that would reduce the adjusted cost base, and therefore are not deductible from capital gain. If you had rented the property out you would have been able to deduct them from your rental income.


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## MoneyGal

^^ This; exactly this.


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## arcticdude

Thanks, yeah, that's how I concluded I would calculate my capital gains on this...But now that I know what I have to do, that T2091(IND) really confuses me...it keeps refering to 1981 &1982, & Seniors & spouses...none of which apply! I bought in '91, sold in 2011, I'm 51, I don't have any spouse related issues...That form is way more confusing than it has to be... Good grief!...Chapter 6 doesn't really clarify things much either...I know what I have to do...I just can't get past the obfuscation on the form! ...And ultimately there's the issue that I am using UFile...Where is all of this in the software I'm using?...I appreciate the time you took for the reply...Now I'm stuck on foolishness :-s



OhGreatGuru said:


> ...Your capital gain is based on your purchase price and net selling price, and the principle residence exemption is prorated for the number of years it was your principle residence. See Chapt. 6 of T4037 and Form T2091.


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