Tax owed on the profit from selling an investment property, calculated as the difference between the sale price and the adjusted cost base. In Canada, 50% of capital gains are currently included in taxable income. A 2024 federal budget proposal to raise the inclusion rate to 66.67% on gains above $250,000 was deferred and has not been enacted; the 50% rate remains in effect. Tax outcomes depend on your specific situation — consult a Chartered Professional Accountant.
Related Articles
- Annual Portfolio Review: Find Trapped Equity in 7 Steps
Run a thorough annual real estate portfolio review with this 7-step checklist. Uncover trapped equity, optimize cash flow, and plan your next Canadian deal.
- Section 85 Rollover: Transfer Rentals to a Corp Tax-Free
Use a Section 85 Rollover to move rental properties into a corporation without triggering capital gains. Eligibility, process, and pitfalls.
- Succession Planning for Canadian Real Estate Investors
Learn how Canadian investors can plan succession for rental portfolios with docs, management continuity and tax planning.
- Can You Claim CCA to Create a Rental Loss in Canada?
You cannot use CCA to create a rental loss in Canada. Class 1 buildings depreciate at 4 percent, and claimed CCA is recaptured when you sell.
- Commercial Mortgage Through a Holding Company in Canada: Corporate Ownership Guide
How to get a commercial mortgage in a corporation or holding company in Canada — lender requirements, personal guarantees, and structuring considerations.
- Commercial Mortgage Tax Deductions Canada: What You Can Write Off
Complete guide to tax-deductible commercial mortgage expenses in Canada — interest, fees, CCA, and structuring for maximum tax efficiency.
← Mortgage & Real Estate Glossary 2026 · Editorial standards