Greetings from Allan Madan! Watch Video
Allan Madan, CPA, CA
Madan Chartered Accountant is an accounting firm specializing in tax, assurance, accounting and consulting Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Great new site. Red is really your colour Allan 🙂
Look forward to reading your blog and getting smart in time for TAXES!
Rachel
Hi Allan,
I was wondering if you could answer a question regarding my real estate investments. I have two condos – one I purchased 6 months ago, one 2 years ago. I want to sell them both so I can purchase a house. Will I get taxed on the capital gains of the condos even though I am buying a house with the money? Also, are there any other taxes or financial commitments I must make?
Thank you Michael for your question.
As an Accountant in Toronto, I can tell you that the gain on your 2 condos will likely be considered to be a capital gain. Only 50% of a capital gain is taxable. Therefore, if your gain on the sale of the condos, after subtracting legal fees and commissions, was $100,000, then the taxable portion would be $50,000.
Even though you are using the proceeds from the sale of the condos to purchase a home in which you will live, the gains on the condos will still be taxable. (I have assumed that you did not live in any of those 2 condos, and that they were rental properties).
The principal residence exemption exempts the gain on the sale of your home (in which your reside) from tax.