Canadian Content - Selling strategy to avoid capital gains
Looking for some advice on a way to sell a property in Canada without taking a big capital gains hit. I purchased a rental property for $193,000 a few years ago and our market has gone up considerably since. The property is likely worth around $375,000 or more right now. We have amazing retired tenants who are planning to stay there forever, which is great, but we have not been able to keep up with drastic market rent increases due to BC's rent controls. The property cash flows, but not much considering the equity we now have.
We have considered selling, but unfortunately in Canada there is no 1031 exchange to keep from paying capital gains. One thing I would like to know would be if it made any difference to sell it with seller financing? If sold to someone who would let us carry the note we could amortize over 25-30 years and be happy with the monthly payments. If the buyer put 20% down, we could easily pay off the remainder of our mortgage and carry that note. Would that spread our gains over multiple years, or would the sale trigger the capital gains tax regardless?
Any other ideas?
We have considered selling, but unfortunately in Canada there is no 1031 exchange to keep from paying capital gains. One thing I would like to know would be if it made any difference to sell it with seller financing? If sold to someone who would let us carry the note we could amortize over 25-30 years and be happy with the monthly payments. If the buyer put 20% down, we could easily pay off the remainder of our mortgage and carry that note. Would that spread our gains over multiple years, or would the sale trigger the capital gains tax regardless?
Any other ideas?