Jason Heath – April 19, 2016 – Money Sense
via/ http://www.moneysense.ca/
First, a primer on how capital gains tax works. For real estate, it’s based on the sale price, less selling costs, less capital improvements made to the property, less your adjusted cost base (ACB) or acquisition cost.
Fifty percent of a capital gain is taxable and is added to your other sources of income for the tax year. A large capital gain—for example, on a piece of real estate—can easily push you into a higher tax bracket.
There are nuances related to real estate like whether or not a property might qualify as a principal residence, whether a capital gains exemption was declared in 1994 if you inherited prior to that and so on that you also need to consider.
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