Canadian friends I need some input.
Home owner who bought 2 acres of land in Winnipeg, Manitoba last March for 125,000.
Move ahead 1 year and I have realtors I know contacting me asking me if they can buy it for 275,000.
A 150,000 profit in a year. Here’s the problem. I will have to pay capital gains on it because it’s my second property.
Any way for me to avoid this? Will it be 42% of the profit if I have to pay?
Any help would be appreciated.
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04-26-2021, 09:14 PM #1Registered User
- Join Date: Jul 2013
- Location: Vancouver, B.C, Canada
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How to avoid paying capital gains.
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04-26-2021, 09:38 PM #2Registered User
- Join Date: Apr 2012
- Location: Alberta, Canada
- Age: 39
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I believe half of the capital gains would be taxed at the Manitoba marginal rate depending on your tax bracket. So it won’t be as bad as you assumed right off the bat because only 50% of the gains need to be reported as taxable.
I’m not entirely sure what strategies you may be able to employ at this stage in the game, you could try finding a tax-focused CPA who could offer some insight but you’d be paying for that and no guarantees it will produce a real benefit and not sure it would be worth the cost for a one-time $150k profit
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