I am in the process of starting a new business venture and looking to purchase a commercial property. I have had many personal properties and have never had to worry about this as the properties are my primary residences. I will be asking my accountant about this later this week but do want to get some information before hand, if anyone knows anything about this?
So far as I understand about commercial properties is that if sold and made a profit from it would be considered capital gains. And capital gains are taxed only on 50% of the increased value in the property and at the personal tax rate of the person. If it is a commercial property that will be listed to the corporation what would the tax rate be based on?
Would it be based on the corporations tax rate or the CEO or principal owner of the corporations personal tax rate?
Also do they take the inflation index into account when calculating the capital gains amount of the property?
For example if I hold on to the property for 20 years and inflation is at 1% per year every year for the next 20 years do they increase the value of the property by 20% prior to calculating the capital gains amount?
Any information would be helpful.
So far as I understand about commercial properties is that if sold and made a profit from it would be considered capital gains. And capital gains are taxed only on 50% of the increased value in the property and at the personal tax rate of the person. If it is a commercial property that will be listed to the corporation what would the tax rate be based on?
Would it be based on the corporations tax rate or the CEO or principal owner of the corporations personal tax rate?
Also do they take the inflation index into account when calculating the capital gains amount of the property?
For example if I hold on to the property for 20 years and inflation is at 1% per year every year for the next 20 years do they increase the value of the property by 20% prior to calculating the capital gains amount?
Any information would be helpful.