I purchased a house in Toronto, to re-build and sell for profit. Purchase: 1,470,000 Construction: 1,030,000 Sales: 3,125,000 Income: 0 How much capital gain tax & HST?

[pinklady3245]

Your Capital Gain will be: $3,125,000 - ($1,470,000+$1,030,000) = $625,000

Since only 1/2 of Capital Gains are taxable, you will have to complete section 3 of Schedule 3 and report $312,500 ($625,000*1/2) as your Taxable Capital Gain. 

For more information, please see:

• Schedule 3 Tax Form: Capital Gains or Losses in Canada
• Claiming Capital Gains and Losses
• Example of how to calculate your capital gain

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