Tax Sale Guide Home
Capital Gains
Chapter: AFTER TAX SALES
Woody
How does it work if its not your primary residence? Do you pay 30% on the sale price, or on the difference between purchase price and sale price.
JulyB
would say 50% of your gain after all related expenses is taxable for individuals. That is, the profit (50% of the gain) will be added to your personal income for that year.
For corporations, the gain is 100% taxable. It is hard to say which is better (corporation or individual) since most of the cases we have to pay 25% of the TOTAL gain as tax in either case.
For individuals, 50% of gain is taxable and if your tax bracket is in the 50% range, then it will be more or less 25% of TOTAL (50% x 50%).
For corporations, if yours is a small Canadian owned one, the tax rate is also, more or less, 25% of the gain.
I f you use CCA (capital cost allowance) to reduce your annual rental income (if it is a rental property), then your gain will be higher than difference of your sale price and purchase price. The gain will be the difference of your sale price and the depreciated price on book, of course, minus all the related expenses such as agent's commission. legal fees and etc.