Canadian taxation of a capital gain on sellng an apartment?

Question

If one has owned an apartment for 4 years (investment property rented out from the start, not principal residence) and makes a capital gain on selling it, is the capital gain added to one's regular taxable income and included in the computation of Canadian federal and provincial income tax rates, or is it taxed separately?

Answer 1

In the eyes of the income tax act and the Governments A corporation and an individual are viewed as two separate entities.

therefore, if your property income was generated through a registered company that you own, the rental income/cap gain will have to be declared in the corporation's tax return.

however, if you do not have a company, you must declare the rental income/cap gain as business income in your own personal tax return.

Answer 2

50% of the gain is included in income, taxed at normal rates.

Answer 3

It is taxed on the tax return in the year it was sold.  The Capital Gain is taxable at 50% and added to your income.  

Also if you had taken and depreciation in those 4 years and you sold the property for more than you purchased it for there will also be a recapture of depreciation added to the final years rental income.