Xref: utzoo ont.general:1028 can.general:1715 Path: utzoo!attcan!utgpu!watmath!watmsg!sccowan From: sccowan@watmsg.waterloo.edu (S. Crispin Cowan) Newsgroups: ont.general,can.general Subject: Re: The Taxman Cometh for NSERC Award Recipients Message-ID: <29039@watmath.waterloo.edu> Date: 11 Sep 89 15:49:26 GMT References: <1989Sep8.084613.10300@lsuc.on.ca> Sender: daemon@watmath.waterloo.edu Reply-To: sccowan@watmsg.waterloo.edu (S. Crispin Cowan) Distribution: can Organization: U. of Waterloo, Ontario Lines: 42 In article <1989Sep8.084613.10300@lsuc.on.ca> dave@lsuc.on.ca (David Sherman) writes: >kim@watsup.waterloo.edu (T. Kim Nguyen) writes: [stuff] >> - Losses on rental properties can be written off against >> other income. This might be a good reason to go out and buy >> a place (building/condo) for yourself... and if it is your >> principal residence, any profit you make on selling it will >> be considered nontaxable (up to $100k). > >Wrong. First, the principal residence exemption has no dollar limit. >Second, if you rent part of the building, you may lose the principal >residence exemption in part. Third, the general capital gains exemption >is indeed $100,000, but that's combined with all other capital gains. >Fourth, you can lose access to the exemption if you deduct >certain passive losses including interest expense (such as the >mortgage interest on your rental property.) Could you post a few more specifics here? My wife & I (both students) bought a house and feed the mortgage from rental income on some of the bedrooms. I had already understood that deducting mortgage interest would cost me the principal residence exemption, but I was unaware that renting endangered it as well. What are the rules regarding renting the building vs. losing the principal residence exemption 'in part'? Thanks, Crispin >David Sherman >-- >Moderator, mail.yiddish >{ uunet!attcan att utzoo }!lsuc!dave dave@lsuc.on.ca ---------------------------------------------------------------------- Login name: sccowan In real life: S. Crispin Cowan Office: DC3548 x3934 Home phone: 570-2517 Post Awful: 60 Overlea Drive, Kitchener, N2M 1T1 UUCP: watmath!watmsg!sccowan Domain: sccowan@watmsg.waterloo.edu "Everything to excess. Moderation is for monks." -Lazarus Long