I have a few questions on capital gains tax on a 2nd property in Ontario, Canada.
1) Is capital gains calculated based on Sale price - Current Mortgage, or Sale price - purchase price? Im assuming the latter for my next question.
2) If I sold house today for $550k, and purchased it at 250k, what would be my profit ? Please correct me.
my calculation is as follows:
550 - 260 = 290k , Initial gain
290k * .5 = 145k , 145 is taxable
145k * ~.37.70 (not sure on this tax rate) = $54,665 K is taxed from my sale price of 550k,
Leaving me with 550k - $54,665 - Mortgage remaining as my profit ?
Any help or correction would be appreciated, thanks