What Is Capital Gains Tax?

Author: Boychuk Mortgage Group |

  • Capital gains tax is a government tax on the profits realized on the sale of an appreciating asset.
  • In real estate today, if you sell an investment property for MORE than your acquisition cost, you will realize that capital gain and be taxed accordingly.
  • In Canada, the capital gains tax is 50% on HALF of any profits gained at the time of sale.
  • Remember, capital gains tax is only payable on the appreciating value, and not the full sale price.
  • Corporate tax rates will differ if your investment is held in a company name.