Did you sell a principal residence in 2016? If so, you should know that there is a new rule requiring taxpayers to report the sale of principal residences, whether taxes are owed or not.
Prior to this regulation, the sale of a primary residence was exempt, which eliminates a potential capital gain. As a result, there was no need to report it.
But, starting for the 2016 tax year, Canada Revenue Agency now requires this information. You must report basic information, such as date of acquisition, proceeds of disposition and description of the property, on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption.
You can read the full details by clicking here.
In the meantime, there are no plans as to whether or not a tax will be imposed on these types of transactions. However, it does appear that the CRA is looking to at least track real estate earnings.
Questions? Please feel free to contact me, Deborah Clerk – Real Estate Sales Representative, ASA with Keller Williams Realty Solutions, Brokerage, for more information.
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