Selling house and pension benefits

[hammer]

Currently I receive cpp and some GIS. Will I lose some of these benefits if i sell my $300000 house which I bought for $40,000 in 1970. After i plan to move in with my son.

[ynot]

If I understand correctly, it's your primary residence so you wouldn't have to claim capital gains. That said, the interest you earn on the money (300K less commissions) will have to be recorded as income (assuming you're earning interest or revenue off of it) and that may result in the lower CPP.

I'm not 100% on this, so anyone more knowledgeable please provide more insight.

[ghostryder]

and that may result in the lower CPP.

I'm not 100% on this, so anyone more knowledgeable please provide more insight.

CPP is not income tested. How much CPP you get depends on how much you paid into the system.

OAS & GIS however are income tested.

[Bullseye]

As above, the sale will have no impact on anything, as all capital gains from personal residence are tax free. The issue will be what you do with those proceeds. If you invested it in something interest bearing at 4.5%, that would add $13,500 to your annual income, and combined with CPP benefits, would almost certainly result in GIS clawback, which begins at just over $15k/year. CPP would not be affected.

You don't receive OAS as well? That is income tested, but if you're receiving GIS currently, then I doubt your income is anywhere near high enough to worry about it regardless. Clawback starts around the $65k range.

You could put the money, or a portion of it, in something where no income is triggered until sale, like some equities, but that would depend on your age and other factors.

[ynot]

Thanks ghostryder and Bullseye for correcting me.