What are real estate capital gains?
Real estate capital gains refer to the profit made on the sale of a property. In other words, if you have recently sold a property for a higher price than you bought it for, you may have to pay tax on that amount. The tax payable is on 50 per cent of the real estate capital gain.
Who is exempt from paying capital gains tax?
1) Properties sold were bought before 1989 - This rule does not apply to inherited properties. In the case of inherited properties, the date of acquisition to be considered is the date of death of the owner and not the date of division of assets.
- Reinvestment in a new home - If your family has grown and you want to sell your current home to buy a new one, you may be able to benefit from an exemption from paying this tax. But for this to happen, the capital gains must be fully reinvested in the purchase, construction or rehabilitation of another property.
- Pensioners - All pensioners over the age of 65 who have sold a property intended for their own permanent residence can be exempt from paying this tax.