Asking the FWF community as I couldn't find much info on CRA's website.
When a seller offers seller financing (or VTB), how is he/she taxed on the capital gains of the sale? Are they immediately taxed on 100% of the capital gains?
I'm currently looking at buying a multifamily dwelling and looking at all means of financing I could propose. I figured the more I understood how it worked, the more proactive I could be in the offers I write.
Seller Financing: how are their capital gains taxed?
Re: Seller Financing: how are their capital gains taxed?
Google "capital gains reserve" - the vendor can spread the capital gain out over 5 years (or less), depending upon how much of the proceeds they receive each year.