Capital Gains Tax in Ontario

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Capital Gains Tax

You may experience a capital gain or loss when you dispose of certain property. This disposal may be through a sale or transfer. This type of property for purpose of capital gain or losses can include, but is not limited to:

 

Real estate, including land

Stocks

Bonds

Ownership or shares of a privately held company

Certain trusts.

 

You will need to complete line 127 and section 3 of your income tax return.

 

Please refer to publication T4037 to determine if you have a reportable gain or loss:

Ref: http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html

Article Follows : Capital Gains Tax on the Sale of Real Estate Properties 

Appropriate expert advice from a Chartered Accountant or Tax Consultant to be /should be sought in regard to capital Gains issues and exemptions.

Please contact me should you have a question in this regards for Buying or Selling Real Estate Related matters.

The information provided in this blog is for information purpose only, Author is not Liable for any Misuse or Other, Use on your risk.Please verify the codes from local and federal laws and use right professional advise in the matter.

Author is Licensed Real Estate Agent and Mortgage Agent, and provide service in the respective field only.

First Time Home Buyers Resources Online

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Buying a Home & Your Taxes, federal income tax return, first time home buyers, First Time Home Buyers Resources Online, income tax return, refundable tax credit, time home buyers

The Home Buyers Plan (HBP)

The Home Buyers Plan allows you to borrow up to $25,000 from your RRSP’s tax free to buy or build a home. Each plan holder (home owners) may withdraw up to the $25,000 limit their RRSP accounts except for locked-in accounts. This means that the combination of withdrawals from you and your spouses’ RRSP’s cannot exceed $50,000.
Buying a Home & Your Taxes

Who Qualifies For The HBP?

You can use the HBP if:

• You or your spouse have not owned and occupied a home as your principal residence in the preceding 4 years, or
• You are buying or building a home for a disabled person who is related to you.

Do The Funds Have To Be Used To Build or Buy A Home?

No. You can use the funds for any purpose you like. You only have meet the qualifications.
Home buying advice for first timers

Is There Any Tax On the HBP Withdrawal?

The withdrawal under the HBP is tax-free but there are things you have to do to ensure the withdrawals remain tax free.

1. The funds withdrawn must be used to acquire a home before October 1st of the year following the withdrawal.
2. The funds must be repaid to your RRSP over a maximum of 15 years. These repayments begin in the second year following the HBP withdrawal. The minimum repayment is 1/15th of the actual HBP withdrawal. If you do not make a repayment, 1/15th of the withdrawal will be added to your income in the year is was due.
3. To ensure you have disclosed your repayment appropriately, be sure to complete Schedule 7 of your Federal Income Tax Return.

First Time Home Buyers Tax Credit

If you bought a home after January 27, 2009, you may be entitled to claim the $2,000 first time home buyers tax credit. This is a non-refundable tax credit that can be claimed either by the purchaser of the home or their spouse.

Buying a Home & Your Taxes

Successful Real Estate Investment Strategy

First Time Home Buyers Resources Online

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