Tax Implications on Sale of Canadian Real Estates

Please always consult your accountant or Lawyer with any information you receive throught these forums. We will not be responsible if you act upon any of the advice you receive.

Moderator: Flipping4Profit.ca

Post Reply
Flipping4Profit.ca
Posts: 4400
Joined: Wed Mar 29, 2006 5:04 pm
Contact:

Tax Implications on Sale of Canadian Real Estates

Post: # 47568Post Flipping4Profit.ca
Wed Jan 09, 2019 6:18 pm

Tax Implications on Sale of Canadian Real Estates


When you sell your home, you may realize a capital gain. If the house you are selling has been your principal residence for every year you owned it, the government exempts tax on gains received from the sale. If at any time during the period of your ownership the property was not your principal residence, you may have to report all or part of the capital gain.

On the other hand, if you sell a newly purchased primary residence within one year, you could be subjected to tax on 50% of the gain. However, if you are a habitual flipper who doesn’t live in the houses that are bought and sold, CRA will assess those proceeds & charge you on the 100% of the gain.

When you buy & sell houses on a regular basis, the government deems that you are in the business of buying & selling houses. The gains from the transactions are deemed to be generated from “active business income” which are 100% taxable.

Post Reply