Real Estate Assignments: Tax Exposure Calculator 

If you are buying and selling pre-construction real estate in the course of a business (i.e. you did not plan to purchase the property for personal use), this calculator may give you a general idea of your combined HST and income tax exposure in Ontario, Canada.

This calculator compliments our Blog Post on the 2022 Federal Budget changes related to real estate assignments. We strongly encourage you to read our Blog Post before using the calculator.

 

The calculator is merely an illustrative tool for the hypothetical scenario described in the Blog Post, i.e. where the assignment sale triggers business income for the purposes of the Income Tax Act (Canada) and a taxable supply subject to HST for the purposes of the Excise Tax Act (Canada). If your assignment sale results in capital gain for Income Tax purposes, this calculator won't work for you (we might create one for our readers, if there is enough interest). Talk to your tax advisor to determine whether your assignment sale would result in business income or in capital gain.

 

This calculator does not account for closing costs (real estate commission or legal fees, which are generally deductible) and does not account for a number of personal tax credits that may be available to you. The amounts are approximate. 

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Important Disclaimer

DO NOT rely on this calculator for an accurate estimation of your tax liability, or for any tax, legal or accounting advice. Always speak to your tax professional to estimate or determine tax consequences applicable to your specific situation or contact our tax lawyers.

Tax Exposure Calculator 

Sale of Real Estate
Property on Assignment

Please fill in all mandatory fields

Re-sale price should be higher than price of pre-construction

Your Assignment
Funds Received from Assignee
Your Assignment Consideration (Excluding Deposit but Including HST)
Your HST payable to CRA
on Assignment
Your Income from Assignment
(net of HST)
Your Tax Implications
Your total annual income from all sources
Your income tax on all your annual income 
HST you must remit to the CRA
as a result of the Assignment 
Your total tax cost (Income Tax liability and HST remittance)
Your after-tax proceeds 
Your effective tax rate
(combined effect of paying
Income Tax and remitting HST)