If you have managed to find a buyer for your real estate, and the only thing left is that the contract is initialed and registered with the authorities, you need to know which financial obligations you are obliged to regulate after a successful transaction.www.mkclaw.ca is the right place for you in case you need legal help when buying or selling a property.
Capital gains tax
The first thing to keep in mind is a capital gains tax. Capital gain is actually a positive difference between the selling price and the purchase price of the property. If the difference between these two terms is negative, that is, the seller is at a financial loss during the transaction, there is no obligation to pay this tax, because there is no profit.
The capital gains tax is 15% of the difference between the selling and the purchase price of the real estate. If you have paid the apartment 50 thousand dollars and now you successfully sell it for 60 thousand dollars, your capital gain is 10 thousand dollars. For this amount, if you are a reseller, you pay a tax of 15%.
However, the law regulates the rule that if the seller of the apartment invests his capital gain in the purchase of another property in order to solve the housing issue of his / her family, then he / she can be exempted from capital gains. The right to release is acquired if the assets acquired through the sale of the real estate are invested within 90 days from the sale on the occasion of resolving the housing issue.
Taxes to be paid when selling an apartment
It should be kept in mind that the law determines the resolution of a housing issue as the purchase or construction of an apartment for the seller or for a member of his/ her family based on the overall improvement of living conditions.
Also known as the tax on the transfer of absolute rights, it represents 2.5% of the estimated value of the property. By law, the obligation to regulate this monetary obligation falls on the seller. However, there is an unwritten tradition that the buyer pays this tax on behalf of the seller. In order to do this, it is essential that the seller issues a power of attorney to the buyer so that he/ she has legal support to settle the debts on his/ her behalf.
The deadline for applying for payment of sales tax is 10 days after the authentication of the sales contract in the municipality where the real estate is sold. Upon receipt of a payment decision, the seller or authorized buyer has 15 days from the date of receipt to make payment of the debt.