Capital Gains

Taxable Capital Gains (Line 127 on the Canadian Tax Form)

This is the most requested topic I see about Tax by a factor of two to one over any other. Here I bring together links and information on Capital Gains for Canada, United States, Other countries and cross-jurisdictional cases.

From my "Ultimate Tax Guide" to the answers in CEN-TAPEDE, capital gains proves again and again to be a complex and misunderstood subject, not only by you the taxpayer, but by tax and accounting professionals the world over. Of course the rules have changed over the years too, making filing back-tax returns complex because the governments don't typically have the old forms and rule books.

Specific Areas of Interest

There are over 200 questions and answers in our e-mail archives about capital gains - here are some of the highlights or you can do the search yourself on Google

Capital Gain on Homes and Real Estate:

• Gift of Equity - any capital gains tax
• Selling a rental home
• Capital Gain on pre-sale condo flip
• Capital Gain execmption (Canada) on house never lived in
• Capital Gain or Income on real estate flip
• Rental Condo - when to pay Capital Gains
• Another about sold property purchased as home but not moved into
• Condos, Condos everywhere - which is Capital Gain free and which isn't?
• Saccomanno tax case - home and 1/2 hectare means common commercial property can be Capital Gains free
• Yates tax case - Land in excess of 1/2 hectare if Zoning requires it is Capital Gains tax free

US/Canada Cross Boarder:

• Capital Gain on Canadian real estate by US citizen
•  

Other Countries:

• Capital Gain on Indian stock purchased by US citizen living in India
• Out of country for 6 years - move back to home that has been rented - deemed disposition and capital gains

Resources:

• Canada Revenue Agency Capital Gains Guide (T4037)
• Canada Revenue Agency Schedule 3
• Canada Revenue Agency Principal Residence IT-120R6 Bulletin (see also the Yates Case for my thoughts)

 And of course, here you'll find articles and rulings excerpts that help you to understand what is going on

Last Updated Wednesday, July 30 2008 @ 04:50 PM UTC|1,146 Hits