Skip to main content
Courteo Prêts
Start my file

Actors and process

Real estate capital gain

Français : Gain en capital immobilier

Profit realized on the sale of a property (sale price - adjusted cost base). Taxable federally and provincially, except for the principal residence. Inclusion rate: 50% (individual) or 2/3.

Definition

Capital gain is calculated as follows: Gain = Sale price - Adjusted Cost Base (ACB)

The Adjusted Cost Base (ACB) includes: - Original purchase price - Acquisition costs (notarial fees, welcome tax) - Capital improvement costs (renovated kitchen, windows, foundations) - Less: any capital cost allowance (CCA) already claimed

Inclusion rate 2024-2025: - **Individuals**: 50% of gain included in taxable income for gains up to $250,000 per year. Beyond that, 2/3 of gain is included. - **Corporations and trusts**: 2/3 of gain included (since 2024 federal budget).

**Principal residence exemption**: if the property sold was your principal residence each year of ownership, the gain may be fully exempt.

**Anti-flip rule**: a resale within 12 months is presumed to be 100% business income (not a capital gain).

Related terms

Ready to take action?

Start a file journey to obtain a negotiated rate via the Courteo network.

This definition is provided for informational purposes only and does not constitute legal, tax, or financial advice. For a personal situation, consult an AMF-licensed mortgage broker, notary, accountant, or the relevant financial institution.