Capital gains when selling property to family

Author: External Author | | Categories: Tax Accountant , Tax Planning , Tax Services

Asset sales between family members can be tricky to facilitate at a family level, let alone from a tax perspective. There are tax implications to be aware of here, Johanna.

First, a primer on how capital gains tax works. For real estate, it’s based on the sale price, minus the selling costs, capital improvements made to the property, and your adjusted cost base (ACB) or acquisition cost.

Also, it’s important to know that 50% of a capital gain is taxable and is added to your other sources of income for the tax year. A large capital gain—for example, on a piece of real estate—can easily push you into a higher tax bracket.

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Original Article Source Credits:   Money Sense ,

Article Written By:  JASON HEATH

Original Article Posted on:  MARCH 18, 2022

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