A forum to discuss Real Estate deals, Education and Network
It is currently Thu Jan 17, 2019 11:33 pm

All times are UTC - 5 hours

Post new topic Reply to topic  [ 1 post ] 
Author Message
PostPosted: Wed Jan 09, 2019 6:18 pm 

Joined: Wed Mar 29, 2006 5:04 pm
Posts: 4191
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.

Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours

Who is online

Users browsing this forum: No registered users and 0 guests

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group