Today's blog will look at the tax implications of constructing a laneway house. First things first, what IS a laneway house? It is a small detached residential infill house that typically fronts on the lane of a larger principal house and is generally located where the garage would normally go on a single-family lot. A laneway house can be built on any lot 32 feet or wider in any RS single family zone. Within Metro Vancouver, this type of housing unit is gaining popularity as it increases the value of one's home. However, a few things to note is that it could potentially affect the eligibility of claiming a Home Owner Grant, may result in higher property taxes and may affect the capital gains principal residence exemption for tax purposes.
The City of Vancouver sets out a step-by-step guide to help with the planning process which can be found here. Check out the guidelines here and the regulations here.
Below you will find additional documents that may be of use:
» Laneway House Guidelines
» Laneway Housing Regulations
» City of Vancouver Checklist of Application Submission Requirements
Remember, it is advised to know the tax and legal implications of having a laneway house. Speak to a knowledged real estate agent or legal representative in regards to this matter. For all your real estate needs, contact us at firstname.lastname@example.org or alternatively at 604-801-6654.