1)yes once you later the sell the condo you will have to pay the capital gains tax..
but the cost price will not be what you paid for the condo…but the fair market value on the day you rent the property…effectively you do not pay tax on the growth when you lived there..since no capital gains on principal residence..

2)interest on student loan can be claimed only when borrowed from government loan programs like OSAP(in ontario)…your wife has the option of claiming the interest in the current year or any of the next 5 years..she cannot transfer the interestc redit to you..

3) education credit she can only transfer her surplus to you and there is a cap on how much maximum can be transferred..

federal tuition transfer – $5,000 maximum per year
ontario tuition transfer – $6,003 maximum per year

thanks

1. We are thinking of moving out of our condo which is our primary residence into the suburbia. I think i have enough savings to pay 5% downpayment without selling the condo. So we are considering renting it out (i have about 45000 dollar equity in this condo and my current interest rate is prime -.75 for a 3 year term that started appproximately a year ago. I believe a good chunk of my biweekly payments is going down to pay principle). If i did rent the condo, i think the property will have self sufficient and have a positive cash flow.
So if i were to do so would the government treat this as a rental property once i sold it a later date and charge me capital gains tax? Are there any provisions that i can exploit?

2. As for my second question, my wife is considering going to school part time for an MBA program which will be quite expensive. We will more than likely take out a loan to finance her education. If we go to the bank and ask for such a loan, is the interest on it tax deductible? And can she transfer her educational credits to myself as her spouse that i can use (her income will be more than 9K).