The Canada Revenue Agency (CRA) is smartening up and putting a new rule in place starting for the 2016 taxes, that requires all taxpayers to report the sale of their principal residence, whether they owe tax or not.
Sales of primary residences have long been immune to the taxman, thanks to the principal-residence exemption, which eliminates the potential capital gain. We’re never had to report it.
This may be all there is to it, or maybe they’re slowing introducing us for a big change to come. There is no plan as of yet to impose a tax on these types of transactions.
The government will now be able to keep their eyes on the flippers who have been avoiding paying the capital gains. I’ve seen a lot of flippers move in during the renovation period calling the property their principal residence, only then to resell after they’re done. It will be harder to dupe the tax man if you are declaring one or two houses a year.
If you would like more information to see how your property qualifies, please contact me firstname.lastname@example.org