# Little question... (yes noob)



## SkyFall (Jun 19, 2012)

Do you have to pay taxes on the capital gain you make on a property's transaction (sell)? regardless if it's a income property or not... and also is it your marginal tax bracket that applies? and last question, do you pay both taxes on a purschase of a property?


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## wendi1 (Oct 2, 2013)

You pay tax on capital gains on any property that is not your principal residence. If you have made enhancements to the property, you get to subtract them from the price you sell it for, assuming you have kept the receipts. Capital gains can be offset by capital losses if you have any.

It is your marginal tax bracket that applies. You also pay capital gains tax when you sell investments outside a RRSP, RESP, or TFSA, assuming you are lucky enough to have some, and that they have appreciated.

You do not pay capital gains when you purchase a property - but you might pay a "welcome tax" or "land transfer tax" or if it is newly built, the infamous HST.

The CRA website has a lot of very well set out examples and explanations.


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## My Own Advisor (Sep 24, 2012)

http://www.cra-arc.gc.ca/capitalgains/

When you sell your home, you may realize a capital gain. If the property was your *principal residence *for every year you owned it, you do not have to report the sale on your income tax and benefit return. Calculating your gain can be found in the above link.

As for taxes, not sure what you are referring to? Land transfer taxes? HST?

Here is some information for Ontario:
http://www.fin.gov.on.ca/en/tax/ltt/


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## SkyFall (Jun 19, 2012)

thanks a lot guys!


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## MoreMiles (Apr 20, 2011)

What these real estate speculators do.... 

Step 1: Study and obtain a relator license, then you save on transaction commission.
Step 2: Shop around houses, keep the best one for yourself, and the rest for your clients.
Step 3: Move to that nice house and flip 1 year later, it's your primary residence, no capital gain taxes.
Step 4: Repeat once per year, you can start with $200k condo and move up to $1.5m house after 10 years.
Step 5: Rinse and repeat.


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## catherinegriffin (Aug 22, 2013)

Are you trying to become a real estate agent or you just want to sell a property? I think in regards to taxes, all transaction is subject for an equal tax. I suggest that you read tutorials and eBooks that tackle taxes including its bracket.


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