Sarah purchased a rental property in British Columbia for $800,000 and sold it three years later for $950,000. What amount would be subject to capital gains tax?
Correct Answer
B) $75,000
The capital gain is $150,000 ($950,000 - $800,000). In Canada, only 50% of capital gains are taxable, so $75,000 would be added to Sarah's income and taxed at her marginal tax rate.
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Sarah purchased a rental property in British Columbia for $600,000 and sold it three years later for $750,000. What portion of her capital gain is taxable?
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Sarah purchased a rental property in British Columbia for $800,000 and sold it three years later for $950,000. What portion of her $150,000 capital gain will be subject to income tax?