Reporting the sale of your principal residence

The Government has made a change to the Canada Revenue Agency’s reporting requirements for the sale of a principal residence.

Your principal residence (the home where you reside) is exempt from capital gains tax upon sale.  Previously to the rule change, you did not have to report the sale of your principal residence.

Now, starting with the 2016 tax year, you will be required to report the details of the sale of your home on your income tax return.  The new rule also applies to deemed dispositions, such as when you change the use of the property.

The change is aimed at improving compliance with the tax system.  For further information you may speak to your qualified tax professional.