How can I avoid paying Capital gains?

Question

I have a piece of property with a cabin located at a resort in Saskatchewan Canada. I want to sell but want to avoid paying Capital gains. How can I do this?

Serious answers only please!

Answer 1

the way a capital gain is calculated is the following:

Proceeds of disposition (price sold) - adjusted cost base (price originally paid) = Capital Gain (CG)

when selling an asset (and declaring it) you legally must sell the asset at the Fair Market Value.

Consequently, if the Proceeds of disposition (the FMV) > ACB, there is no way to avoid a capital gain (unless you do not declare it).

However, the Income Tax Act allows you to to "defer" the capital gain by "rolling over" the asset.

when you rollover the asset, the seller and buyer decide on an "agreed amount" (AA)  which becomes the POD for the seller and the ACB for the buyer. In order to avoid a CG, the buyer and seller would make the "agreed amount" = to the ACB. Therefore in doing the roleover the POD = AA = ACB = no immediate tax consequences. The capital gain would be paid by the party to whom the asset was rolled over to should the third party sell the asset (assuming that the FMV (at time the 3rd party sells the asset) > ACB = [AA at time of roleover] ).

The only catch is that the third party to whom you can roleover the asset must be a corporation.

Answer 2

Sell it for the same price you paid for it, and there is no taxable gain.  Anything else and you'll pay.  That is the serious answer.