What is my net profit after taking into account BSD and ABSD?

To calculate your net profit after taking into account the Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD), you need to consider the following steps:

Calculate the BSD Paid on Purchase

• For a property valued at $1.02 million, the BSD would be calculated as follows:
  • 1% of the first $180,000 = $1,800
  • 2% of the next $180,000 = $3,600
  • 3% of the next $640,000 = $19,200
  • 4% of the remaining $20,000 = $800
  • Total BSD = $1,800 + $3,600 + $19,200 + $800 = $25,400

Calculate the ABSD Paid on Purchase

• As a Permanent Resident (PR), you would have paid ABSD at a rate of 17% on the purchase price.
  • ABSD = 17% of $1,020,000 = $173,400

Calculate the Net Selling Price After Agent Commission

• Selling price: $1,250,000
• Agent commission: 2% of $1,250,000 = $25,000
• Net selling price: $1,250,000 - $25,000 = $1,225,000

Calculate the Net Profit

• Purchase price: $1,020,000
• BSD paid: $25,400
• ABSD paid: $173,400
• Total costs on purchase: $1,020,000 + $25,400 + $173,400 = $1,218,800
• Net profit: $1,225,000 - $1,218,800 = $6,200

So, your net profit after taking into account the BSD and ABSD would be $6,200.