2

I'm trying to calculate the money I will see as profit from the sale of my house.

I'm tallying the various expenses associated with selling and would like input on any costs I'm missing. I'm in Ontario, Canada and not moving to another house (need to apartment surf for the next few years due to work).

Here are estimates I have so far. What costs might I be missing?

Remaining mortgage balance: -$305,000
Sale price of house: +$360,000
Early payout penalty to mortgage company: -$2,300
Lawyers fees: -$2,000.00?
Capital gains tax and other taxes: -?
Realtors fees (but hoping to sell privately/comfree/grapevine): 0 to -$18,000 (5% sale price)
Unforeseen repairs: -?

This totals +$50,600 "in my pocket" minus taxes and assuming no realtor fees. Am I way off base? Is there anything that can be done to minimize the tax hit?

  • 2
    You base you profit on what price you bought the house for not the balance of the mortgage. Plus you have not included buying costs (eg. conveyancing, title searches, stamp duties, and any other taxes). – Victor Nov 27 '18 at 22:12
  • Ignore any costs associated with initial purchase and any mortgage paydown (it's a rental) – AdamC Nov 28 '18 at 19:22
  • No you do not ignore cost associated with initial purchase, you include them (you have not). If you are trying to work out any capital gains for tax purposes, them mortgage paydown has nothing to do with it, but buying and selling costs reduce your capital gains. – Victor Nov 29 '18 at 0:29
-1

Costs you may have to pay include:

  • legal fees for services, including a statement of adjustment (buyer reimburses you for prepaid property taxes past the sale date)
  • bank prepayment charges
  • registration fees
  • mortgage prepayment penalty and discharge fees
  • realtor or real estate agent fees
  • sales tax depending on where you live
  • capital gains tax for an income property
  • structural repairs
  • I wonder why this got downvoted. seems like a decent answer. – xyious Nov 28 '18 at 16:23
  • 1
    Downvoting is part of the process on Stack. No biggie. The irritating thing is when people do it but do not comment on what's wrong with a question or an answer nor do they take the time to provide a better answer. – Bob Baerker Nov 28 '18 at 16:48
  • I'm not sure why it got downvoted. Probably because most of this answer I already have in the question. Some new things here though, such as registration and bank prepayment charges (neither of which I am familiar with) - Bob, can you elaborate on what these two entail? – AdamC Nov 28 '18 at 19:24

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.