If I sell a house for a profit, will the capital gain be counted as my income for CS purpose? If it does, it is kind of unlogical. I spend 100K of my income (from which I already paid CS) on a house, the extra 100K sale price will be counted second time as my income?
Another question, one of the things I consider is to modify the house to make a rental flat in the basement. I'm going to have to spend about 10K to make it happen. As far as CRA is concerned, the 10K is my capital cost, which I can expense over certain number of years to offset the rental income. (Or any other income, for that matter). Question: how will it be looked at from family law point of view? Will they want to 'tax' my entire rental income and not allow any deductions? Granted I give her NoA and tax return that will have the deductions accounted for, but will she have legal ground to fight that in court?
I know for fact that family law does not always allow deductions that are legal under tax law. For example, meals and entertainment. The judge can ignore those and count all M&E expenses as an income. That is why I'm asking. I know tax system quite well, but family law is another matter.
Another question, one of the things I consider is to modify the house to make a rental flat in the basement. I'm going to have to spend about 10K to make it happen. As far as CRA is concerned, the 10K is my capital cost, which I can expense over certain number of years to offset the rental income. (Or any other income, for that matter). Question: how will it be looked at from family law point of view? Will they want to 'tax' my entire rental income and not allow any deductions? Granted I give her NoA and tax return that will have the deductions accounted for, but will she have legal ground to fight that in court?
I know for fact that family law does not always allow deductions that are legal under tax law. For example, meals and entertainment. The judge can ignore those and count all M&E expenses as an income. That is why I'm asking. I know tax system quite well, but family law is another matter.
Comment