When it comes time to sell your rental property you might have questions about what kind of tax you are going to have to pay?

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What are the tax rules for selling a rental property?

This triggers a Capital Gains tax of 50% on your profit over and above your initial cost of the building.

Did you claim CCA over the years? If so, you will be required to make the income tax payments that you sheltered over the number of years that you claimed the CCA. This will be a one time payment at the year end of the year you sell your property. 

Did you keep receipts and have your property appraised after you fixed it up and rented it out?

If you bought your property and sunk some money into it making repairs - you likely increased the value. When calculating your capital gains tax it will be based off of the increase in value from the time that you renovated (at that new value) compared to the value of it at the time of sale. You will pay tax on 50% of the increase in value. You might need the receipts or at least some sort of proof of value in case you get audited.

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