Capital Gains Tax in BC

[Wayne]

I bought a primary residence in 2000. I lived in it until Oct 2012 at which point I has a tenant move in on a 1 yr lease. I wish to sell this property in 2014. The tenant is on lease until Oct 2014, but will move sooner if need be. I paid $100,000 for the house in 2000. I hope to sell for $325,000. Rent is $975 pr mos.


I was wondering if someone can tell me how much I can expect to pay in Capital Gains Tax here in BC ?





Thanks,


Wayne

 

[Thomas Beyer]

Your taxes payable will be zero until 2012 value as it is your principal residence. After 2012, if a gain to point of sale, your capital gains tax is 50% of your marginal tax rate. The marginal tax rate depends on your income . Roughly 25-45% depending on your annual income. You'd pay half that on the property gain, plus marginal tax rate on any recapture of depreciation that you have claimed over the years. A property worth over $300,000 should be sold immediately and not rented for $925. This rent is far too low in relation to the value.

 

[ToddStokowski]

Since the property was your principal residence for a long period of time and depending on some other factors, and if certain elections were filed, a good portion of your gain, or all, could be tax free. You should obtain qualified tax advice.


Todd Stokowski, CA