Margo Kaufmann

Margo Sells Homes - Your Trusted Real Estate Source

Reporting the Sale of your Principle Residence for Individuals

As of October 3, 2016, the Government of Canada announced an administrative change to Canada Revenue Agency’s (CRA) reporting requirements for the sale of a principal residence.

When you sell your principal residence, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. This is the case if you are eligible for the full income tax exemption (principal residence exemption) because the property was your principal residence for every year you owned it.

Starting with the 2016 tax year, generally due by late April 2017, you will be required to report basic information (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.

The principal residence exemption is an income tax benefit that generally provides you an exemption from tax on the capital gain realized when you sell the property that is your principal residence. Generally, the exemption applies for each year the property is designated as your principal residence

 

For more detailed info -  CRA Website link: http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa11-eng.html

Comments:
No comments

Post Your Comment:

Copyright 2019 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.