Our marital cottage (joint tenancy) was sold last Dec. Net proceeds have been held in trust by real estate lawyer as no SA had been finalized. As I noted in another post, recently had mediation/arbitration where it was "agreed" that I would pay a lump sum out of my half of cottage proceeds to offset any SS.
I am now concerned about the capital gains implications of my scenario. If, hypothetically - I don't know the full figures yet;
- there was a net proceed of $200k and capital gains of $100k total so we would each be "on the hook" for 50k of gains
-lump sum is approx 90k so I would net 10k
-capital gains tax on my $50k could likely be more than $10k so I would end up with less than $0...If I am correct in my assumptions?? I know you only pay tax on 50% of capital gain and at your tax rate
We also have to sell the mat home so I was wondering if I proposed waiving all rights to the cottage proceeds and ask for an adjustment in the splitting of the mat home proceeds? Would that aleviate me from capital gains on the cottage? Or am I screwed there?
Any advice?
Thanks!
I am now concerned about the capital gains implications of my scenario. If, hypothetically - I don't know the full figures yet;
- there was a net proceed of $200k and capital gains of $100k total so we would each be "on the hook" for 50k of gains
-lump sum is approx 90k so I would net 10k
-capital gains tax on my $50k could likely be more than $10k so I would end up with less than $0...If I am correct in my assumptions?? I know you only pay tax on 50% of capital gain and at your tax rate
We also have to sell the mat home so I was wondering if I proposed waiving all rights to the cottage proceeds and ask for an adjustment in the splitting of the mat home proceeds? Would that aleviate me from capital gains on the cottage? Or am I screwed there?
Any advice?
Thanks!
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