Author Topic: Selling rental property and BGRS  (Read 540 times)

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Offline Dimsum

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Selling rental property and BGRS
« on: May 07, 2019, 19:09:10 »
This came up at work today and it was an interesting question. 

Situation:  Mbr is posted from A to B.  Mbr elects not to sell house at A and rents it out, while renting at B.  Mbr then gets posted to C. 

If mbr decides to sell the house in A to buy in C, would the costs be covered by BGRS as it's not considered a primary residence (they were renting in B)?
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Offline TechCrmn

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Re: Selling rental property and BGRS
« Reply #1 on: May 07, 2019, 19:34:42 »
This came up at work today and it was an interesting question. 

Situation:  Mbr is posted from A to B.  Mbr elects not to sell house at A and rents it out, while renting at B.  Mbr then gets posted to C. 

If mbr decides to sell the house in A to buy in C, would the costs be covered by BGRS as it's not considered a primary residence (they were renting in B)?

In short, no, property A would not be eligible. See below...

The IRP policy states:

8.2.02 Occupancy requirements
- CF members or their dependants must occupy the principal residence immediately prior to the sale, in order to be entitled to reimbursement of expenses related to the sale.

Principal Residence - Principal
residence
A dwelling in Canada, other than a summer cottage or other seasonal
accommodation, together with that portion of land (1.25 acres or less) that:

• Is situated at the location to which the CF member's Household Goods
and Effects were last moved at public expense or at a location from which
the CF member is authorized to move Household Goods and Effects
where the CF member's Household Goods and Effects have never been
moved at public expense;

• Is owned by the CF member or the CF member's dependants or jointly by
the CF member and the CF member's dependants; and

• Was occupied by the CF member, the CF member's dependants or both,
immediately prior to official notification of the posting (as defined by
Canada Revenue Agency).