Capitol Gains
Capital Gain
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Every seller must pay tax on 50% of the net profit gained from proceeds of sale of their investment property to the government as the Capital Gain . The primary residence is not subject to the Capital Gain so if you own a property and you live in it you don't have to be worry about the Capital Gain but if you have more than one property the government would consider the non residing property as a rental or investment property so that property might be subject to the capital gain, once you sold your investment property 50% of the net profit will be added to your income for that year, for instance if you bought a property for $ 200,000 5 years ago and now you sell it for $ 300,000 that $ 100,000 profit must be reported as the capital gain once you file your income tax and half that amount ( $ 50,000) is taxable. If you have any question about the Capital Gain you should consult your Tax Attorney |
