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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 98412
Experience:  Lawyer
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I own a condo in calgary which my parents have lived in for

Customer Question

I own a condo in calgary which my parents have lived in for years. They have paid me no rent, just the monthly cost of maintaining the property. I live in europe and did at the time the property was purchased. My parents have recently moved out of the condo due to their ago. If I sell the condo now, what is the capital gains tax ? If I rent the property out then sell later, is the capital gains tax the same? My email is ***@******.*** . Thank you ***** *****
Submitted: 5 months ago.
Category: Canada Tax
Expert:  Legal Ease replied 5 months ago.

Hello! My name is***** you for your question. I'm reviewing it now, and will post back again shortly.

Expert:  Legal Ease replied 5 months ago.

The way capital gains tax is calculated is you take the sale price and from that subtract the acquisition cost. That is the gain.

One half of the gain is included as income for tax purposes.

It doesn't matter if you rent the property out or not as either way this was not your principal residence.

Does that answer your question fully?

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Customer: replied 5 months ago.
Thanks. Do you know what capital gain tax rate applies in my case, as a non resident? Specifically, if the gain is 200,000, then how much would I probably owe? I have no other income in canada
Expert:  Legal Ease replied 5 months ago.

There will be a 25% withholding tax on the gain.

Then you can file a return and may get a bit of a refund but the 25% is likely accurate in Alberta.