Capital Gains Tax
Residents of British Columbia are not required to capital gains tax on their primary residence at the time of sale regardless of the profit made between the price at acquisition and the final sale price of the property.
Capital gains tax does apply to any vacation, rental or investment property within British Columbia. Upon sale of these homes or land, the owner is required to pay 50% of the gross profit achieved on the variance between the purchase and sale price assuming that this is positive. This amount will be applied against the personal tax return of the investor and may be offset by other issues realized by the individual.
If a British Columbia resident owns vacation, rental or investment property abroad, Capital Gains tax will also apply on the sale of this asset. This tax may be reduced by any taxes incurred in the foreign country that may be associated with the sale of a property. This will need to be evaluated on a case-by-case basis.
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