I got an email from my accountant saying that we do have to declare to the CRA when we sell our primary residence if we ran a business in it, but that we don't have to pay capital gains on a primary residence unless any of the following are true:
1) You have claimed CCA depreciation on the home itself relating to the business
2) You have made structural changes to the home for the sake of your business Ie. finished the basement to do daycare/added a bathroom for daycare/added a kitchenette for daycare/added a new exterior door or entrance for daycare etc or anything else structural
3)Your house retained the original house character from when you took ownwership of it IE. It still looks like a private residence from the inside and out, and doesn't look like a preschool or licensed daycare
If any of the above are true, it is posssible that you will pay the capital gain on increased value when you sell. She said check with your own accountant, as situations may vary.
Question- if I moved in September and claimed the basement only at the other house and now my daycare is a shared space at new place how do I go about figuring this on the new taxes for expenses? Thanks
This interesting Busy. I guessing that CRA will know who historically claimed for structural changes for day home so they will know to bill for this if day home owner not know about change.