Revenu Québec explains that ''If you disposed of capital property (for example, if you sold, transferred, gave or bequeathed shares, bonds, debts, land or buildings), you may have to include a portion of the gain realized in your income.''
Capital gain, is as a rule, the proceeds of disposition (a transaction in which a person disposes of capital property voluntarily (by way of sale, transfer, gift or bequest) or involuntarily (where property is expropriated, stolen, etc.).) of capital property, minus the adjusted cost base of the property and the expenses incurred to dispose of it.
For example, if you are considering the sale of one of your second homes, you may be subject to capital gains taxation from this transaction. Note that the capital gain from the sale of a principal residence is not taxable.
You can deduct from your capital gain:
- certain expenses incurred for the resale (such as the commission of your real estate broker, etc.) of your building and the expenses of work for the improvement of this building before its sale.
- Capital losses arising from the sale of shares or other property in the same year.
When you sign a sales contract with your real estate broker, he will explain these concepts so that you are not caught off guard.