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Tax Tip: Defer Capital Gains

When you sell certain types of property including shares, real estate, a business or farm for a gain you may be able to defer the tax on the capital gain for up to 5 years and in in certain circumstances, 10 years.

The Income Tax Act allows you to defer a portion of your capital gain when you sell property but do not receive payment immediately. For example, assume you sell your rental building an incur capital gain. As part of the deal, you agree to have the buyer pay you over 5 years. You will be required to include a portion of the gain in your income each year but and defer the remainder.

The above example is simplistic and property care must be taken to ensure that you have sufficient cash on hand to pay the resulting tax bill each year.

We Can Help You Can Pay Less Tax

Call us today at (289) 288-1206 to email us to arrange your appointment. We provide professional income tax preparation and planning to help you keep more of your hard earned money. Our services are available in our offices or in your home.

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Dean Paley

A graduate of Simon Fraser University, Dean started and operated an independent painting company while perusing a degree at SFU. After graduating from Simon Fraser, Dean entered the Certified General Accountants Program of Professional studies where he obtained the professional CGA designation. After a number of successful years as the head of finance for the Canadian operations in a global financial services firm, Dean moved into a marketing role and established and launched a tax, estate and financial planning support department and service to advisors and clients. During this time Dean successfully obtained the Certified Financial Planner (CFP) designation. Dean has been a member of the Canadian Forces Reserve spanning three decades serving in the Royal Westminster Regiment (B.C.), the Military Police and later as a commissioned officer in the Cadet Instructors Cadre in Hamilton Ontario. Dean Paley CGA CFP has been interviewed and quoted in major media such as the National Post, Financial Post, Toronto Star, Canadian Business, Money Sense and Investment Executive. Dean is married to his lovely wife Deborah and has four lovely children.