The capital gains tax in Canada is pretty straightforward...Revenue Canada requires that 50% of the PROFIT (on the sale of the asset) be rolled into your income statements. In most cases, this will then be taxed at whatever bracket you're in; as income. My accountant told me "...by the time the smoke clears, you're looking at paying around a 1/4 of the residual gain to the gov't..." He also mentioned that your own labour is worth ZERO at selling time, (unless you're incorporated) & can't be deducted. When I sold my last Buick, it didn't cost me a dime in additional taxes...I guess if you're gonna make money restoring cars, they'd better be other people's cars & not your own!
