Calculating capital gains tax on sale of second home in Ontario
What is the capital gains tax rate for 2021?
2021 Short-Term Capital Gains Tax Rates
| Tax Rate | 10% | 35% |
|---|---|---|
| Single | Up to $9,950 | $209,425 to $523,600 |
| Head of household | Up to $14,200 | $209,401 to $523,600 |
| Married filing jointly | Up to $19,900 | $418,851 to $628,300 |
| Married filing separately | Up to $9,950 | $209,426 to $314,150 |
How much is capital gains tax on real estate in Ontario?
The capital gains tax rate in Ontario for the highest income bracket is 26.76%. This means that if you earn $2,000 in total capital gains, then you will pay $535.20 in capital gains tax.
Capital Gains Tax Rates.
| Lower Limit | Upper Limit | Capital Gains Tax Rate |
|---|---|---|
| $220,001 | Infinity | 26.76% |
What are the pros and cons of owning a second home?
The Pros and Cons of Buying a Second Home
- Pro: Vacation Rental Income. …
- Pro: Tax Benefits. …
- Pro: Potential Appreciation. …
- Con: The Challenge in finding renters. …
- Con: Struggling to Sell Your Home. …
- Con: Affordability. …
- Con: Special Attention and Maintenance.