How to Sell Your Condo Episode 10 – Understanding Multiple Listing Contracts for Vancouver Property Sellers
In Episode 9 of How to Sell Your Condo in Vancouver, we discussed marketing strategies…
In Episode 1 of How to Sell a Vancouver Condo, we discussed how it is important to speak to your lender about mortgage penalties when deciding when to sell your Vancouver condo.
In many cases, the answer, unfortunately, maybe yes!
Today we’re going to talk about the taxes that may be payable on the proceeds of the sale of your condo.
A nasty surprise may come tax time, months after you have sold the condo, when Capital Gains Tax (typically 50% of the net profit on the sale – CONFIRM with your Accountant!) may be payable on the increase in the value of a property that was sold.
The condos I help clients sell in Vancouver are either Primary Residences, Rental Properties, or Vacation Homes. To get a clear idea of exactly how the Canada Revenue Agency views your property and how much tax is payable, if any, ALWAYS consult an accountant before selling property in Vancouver.
If the condo you’re selling is your Principal Residence, this property may well be exempt from Capital Gains taxes on any increase in the properties value during the time you owned it.
According to the Canada Revenue Agency page on the topic, a Principal Residence must be:
*** (Remember – I am not an accountant and I am not giving tax advice, please confirm all these details with your accountant!) ***
CRA Principal Residence Definition
So remember, when you’re thinking of selling a condo in Vancouver make sure to check with your accountant to see if there is any Capital Gains taxes payable. Nobody likes nasty surprises come tax time!
With Holding Taxes? 25% of the Sale Proceeds can be Held by the Buyers Lawyer on the Sale of Non-Resident Owned Properties?
Sometimes YES! CRA may apply With Holding Taxes!
If you’re a non-resident owner of property in Canada you may need to get a Tax Clearance Certificate from the Canada Revenue Agency which could take anywhere from 4-6 weeks from the time you list the property.
If the Clearance certificate is not received by the Completion Date of a sale, the Buyers lawyer could possibly hold back 25% of the gross proceeds (ie the money you get for your property!) of the sale until the buyer’s lawyer receives the Clearance certificate!
*** Always call an accountant before you sell a property! ***
Be Sure to Check Out Episode 3 of How to Sell a Condo in Vancouver 3: How Much is My Vancouver Condo Worth?
Questions on Taxes and Vancouver Real Estate? Check out these Informative Videos on Taxes on Buying and Selling Properties in BC!
Looking for Advice on Buying Your Next Property? Check out these Great Videos with lots of Home Buyers Advice!
"*" indicates required fields
I STRONGLY ENCOURAGE QUESTIONS & COMMENTS BELOW!!
This Post Has 0 Comments