You have a capital gain when you sell, or are considered to have sold, what the Canada Revenue Agency deems “capital property” (real estate) for more than you paid for it (the adjusted cost base) less any legitimate expenses associated with its sale.
You have to declare capital gains when you sell property or investments for more than you paid. For example, if you bought property for $200,000 and sold it for $220,000, you have to declare a $20,000 capital gain in the year you sold the property. As of 2013, the capital gains inclusion rate is 50 percent, so you would include $10,000 in your total taxable income. The inclusion rate is the same for everyone, but the amount of tax you pay depends on your total income, personal situation and your province of residence. Similarly, if you bought a property intentionally to resell at a profit, the entire gain would be taxable, rather than just half the gain. For example, taxpayers who purchase property for immediate resale—“flipping”—are subject to tax on the full gain.
A property appraisal report provides you with a current market value for a home. At Affiliated Property Group our appraisers will determine the true market value of the property which will be based on up todate market value or retrospective value back in a set date in time. This value can be used in the future for taxation purposes, asset evaluation, or property sale.