I am selling a rental property that I owned, how will my capital gain being calculated?
Allan Madan, CA
Your capital gain will be calculated based on the difference between the adjusted cost base and the selling price. Note that only 50% of the gain is taxable.
Normally, the adjusted cost base of the property is the original purchase price plus other costs incurred to make the acquisition, such costs are brokerage fees, installation costs, legal fees and the land transfer taxes. If you make any home improvements like additions or renovations through the period which you owned the house, they will increase the house value hence the costs incurred can be also added to compute the adjusted cost base.
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
CA.CPA.CGA
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.
.png)
