For home owners
Selling your home?
Do you know eligible home owners can save the taxes on capital gain?
If you are selling your owner occupied home or condo, you may be eligible to save on your capital gain taxes. However, you can be taxed on any amount generated from rental income. It is important to calculate all expenses including approximate amounts for capital gain taxes prior to putting up for sale.
When selling a home, common closing expenses
- Legal fees (Notary fees in Quebec)
- Brokerage fees (if applicable)
- Pre-inspection (If applicable)
- Adjustments (Property related expenses)
- Drafting of the mandatory documents (ex. Certificate of location, co-ownership declaration, etc...)
(Basis on the nature of transaction, other costs may be applicable)
For capital gain taxes, "Ask Sudha" to calculate an approximate amount based on current market value of your property. You can also visit the revenue agencies webpage links below in the reference or consult with your tax professional.
Apart from closing expenses, it is important to protect yourself from legal liabilities. As a owner of a home, declare in writing to buyer(s) the past & present condition of the property at the time of sale. To your knowledge, describe in detail the conditions from bottom of the foundation to top of the roof. Once the declaration is presented to the buyer(s), request a receipt of acknowledgement signed with date, time and location. As a vendor, protecting from being liable for any visible, latent and/or hidden defects is very important.
If you are uncertain about the condition or choose not to declare, waiving the legal warranty of quality by writing on the purchase agreement 'This sale is made without legal warranty of quality, at the buyer’s risk.'' is the best available option. As a result It may have a negative affect on the asking price and/or demand, but it will protect you over long-time.
Have a question about how to prepare for selling an immovable? Do not hesitate to "Ask Sudha "or visit the OACIQ link below in references.