Inheritance to buy investment property
Posted in Location, Ontario, Property, Scarborough by Questions on June 29, 2014
We were married in 1979 and have lived in our matrimonial home since our separation in 2014. Though “separated”, we both reside in the matrimonial home but live separate lives. In 2004 I used an inheritance to purchase an investment property (condo in downtown Toronto) which has been rented. I am contemplating moving into the condo within 6 months. a few questions:
1) Our matrimonial home will likely be up for sale. Assuming I am living in the condo before the matrimonial home is sold, what are the income tax ramifications for me. Am I looking at capital gains tax on my share of the matrimonial house proceeds, given that I will have a new residence (the condo)? The matrimonial home was purchased in 1983 for $175,000, it’s current value is now approximately $900,000.
2) I used an inheritance as part of the downpayment for the condo purchase in 2004. Mortgage and condo fees have been covered by tenant’s rent. Is the condo considered a joint asset to which my estranged spouse has a claim?