I am learning about assignment sales, and I wanted to fully work out what are all the calculations and fees/taxes when calculating the final net profit I would keep if I do an assignment sale, and was hoping if anyone could check my work for mistakes. For example, lets say I bought a pre-con condo for 620k from builder (this price has HST in it already). And have paid 20% deposit.
I choose to sell the condo for 700,000 in assignment sale for capital gain.
The assignment fee can be 70,796.46 (as with tax that becomes 80,000). What assignee gives to assignor is 124,000 (20% deposit) + 80,000 (assignment fee + tax). QUESTION - Do they pay additional tax in here, or is that already included?
What assignee gives to builder is 620,000 - 124,000.
Lets say lawyers fee with tax come to 2500. Lets say there is a 2.5% co-op fee.
Co-op fee is 700,000 * 0.025 * 1.13 (since you pay tax on this) = 19775 The Deducted profit before capital gain tax is 80,000 - 2500 - 19775 = 57725 (since you can deduct costs for selling) Since capital gain is <= 250k, it is 50% of 50%. So the capital gain tax is 577250.50.5 = 14431.25.
So final profit is 57725-14431.25 = 43293.75. QUESTION - Where I am getting confuses here is, do I need to pay another HST tax on top of 43293.75 or is this the final profit I keep in pocket?
Thanks
