Almost two years ago, we had to move to another city due to a job change. We placed our home (a small condo) on the market for sale where it lingered on and on.... Because our equity was tied up with our old condo, my parents stepped in and helped us with a down payment to buy another condo in our new location.....for the last 22 months, we were juggling two mortagages.
Two days ago, someone made an offer to buy our old condo (hallelujah!!!) and we accepted. Just signed the papers today. Inspection should be a breeze. Settlement is in 6 weeks. On paper we are making a nice profit, but when taking into account the many months the property sat empty, 6% realtors' commission, and the local 1% transfer tax, we are just getting back our 20% down payment and the equity we've built up through mortage payments.
I learned a few lessions. First, don't buy a new home until you've sold your old one. Second, pick your realtor carefully. And third, if your home fails to get ANY offers for months, it's priced too high.
Anyway, as I was glorying in our salvation from our cash-flow problems, a sobering question started nagging me: do we owe tax on the sale of the condo?
Thanks,
markusk
Two days ago, someone made an offer to buy our old condo (hallelujah!!!) and we accepted. Just signed the papers today. Inspection should be a breeze. Settlement is in 6 weeks. On paper we are making a nice profit, but when taking into account the many months the property sat empty, 6% realtors' commission, and the local 1% transfer tax, we are just getting back our 20% down payment and the equity we've built up through mortage payments.
I learned a few lessions. First, don't buy a new home until you've sold your old one. Second, pick your realtor carefully. And third, if your home fails to get ANY offers for months, it's priced too high.
Anyway, as I was glorying in our salvation from our cash-flow problems, a sobering question started nagging me: do we owe tax on the sale of the condo?
Thanks,
markusk
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