Selling a cottage will take more careful planning under new tax rules
Capital-gains timing strategies for cottage sales and partial PRE designations to minimize tax.
Summary of Tim Cestnick — The Globe and Mail (Tax Matters). The Globe and Mail. Read the original.
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What it covers
Cestnick looks at how capital-gains inclusion changes affect cottage sales. He focuses on three levers: timing of the sale, coordination between spouses, and strategic use of the principal residence exemption (PRE).
The column stresses the importance of a robust adjusted cost base (ACB) calculation and explains that even basic items such as legal fees, certain closing costs, and capital improvements can shift the final tax bill when recorded accurately.
Why it matters
Two families with similar cottages can face very different tax outcomes depending solely on sale timing, PRE choices, and documentation quality.
Cottagr takeaway
Run tax scenarios before listing. Confirm ACB data, PRE history, and cash-flow needs so that the selling decision is driven by both family goals and after-tax math.
Summary of Tim Cestnick — The Globe and Mail (Tax Matters) — The Globe and Mail