TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

Is getting your equity without profit considered capital gains

Forum|Forum|3 years ago
February 12, 2023
1 reply
0 views

For example if we buy and sell our home right away but didn’t make a profit on it other than getting our initial down payment back is that considered capital gains?

TurboTax Online

Not necessarily- it depends on the value of the house. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. The equity is separate and has to do with the mortgage or loan used to secure the property and the payments made.

Employee

If you buy or acquire at one price and sell at the same price you have a capital gain of zero.

but you have expenses of sale which reduce your net proceeds, so you have a capital loss equal to your expenses.

this may or may not be deductible, depending on the purpose for which you bought the house.