Did You Sell Your Principal Residence?

Reporting Requirements on the Sale of a Principal Residence

The Government announced an administrative change to Canada Revenue Agency’s reporting requirements for the sale of a principal residence on October 3, 2016. This was to address perceived abuses of the exemption.

When you sell your principal residence or when you are considered to have sold it, 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 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 (PRE).

  • In October 2016, the federal government introduced legislation intended to curtail certain perceived abuses of the principal residence exemption (PRE).
  • These amendments included several changes that impact the reporting of, and computation of, the PRE in respect of dispositions of principal residence properties occurring on or after January 1, 2016. In particular, the PRE will be denied unless information is reported on your tax return.
  • Additionally, an important change that could impact certain trusts holding a principal residence property was also announced.
  • In respect of the new changes impacting trusts, these amendments added new criteria to the eligibility requirements in respect of what types of trusts may be entitled to designate a property as a principal residence.
  • These new eligibility requirements apply to a trust’s disposition of a principal residence occurring in a trust’s taxation year commencing on or after January 1, 2017.
  • Specifically, for years after 2016, only a spousal or common-law partner trust, an alter ego trust (or a similar trust established for the exclusive benefit of the settlor during their lifetime), a qualifying disability trust, or a trust for the benefit of a minor child of deceased parents will be allowed to designate a property as a principal residence for the purpose of the PRE.
  • Consequently, any gains accruing after 2016 on real property held by non-qualifying trusts will be taxable and will not be sheltered by the PRE.

If the property disposition is not reported accurately or timely, the exemption could be denied. CRA could impose a penalty of $100 per month upto a maximum of $8,000 depending on the circumstances.

by advancedtax

603 thoughts on “Did You Sell Your Principal Residence?

  1. minecraft says:

    Hello There. I found your blog using msn. This is an extremely well written article.
    I’ll make sure to bookmark it and come back to read more of your useful information. Thanks for the post.

    I’ll certainly comeback.

  2. minecraft says:

    Hey there just wanted to give you a brief heads up and let you know a
    few of the images aren’t loading properly. I’m not sure why but I think its a linking issue.
    I’ve tried it in two different browsers and both show the same results.

  3. minecraft says:

    I will right away clutch your rss as I can’t find your email subscription hyperlink or newsletter
    service. Do you have any? Please let me realize in order that I may subscribe.

  4. viagra uk says:

    I got this web site from my pal who shared with me concerning this site and now this time I am browsing this website and reading very informative articles or reviews at this time.

  5. minecraft says:

    Someone necessarily assist to make severely articles I’d state.

    This is the first time I frequented your website page
    and so far? I surprised with the analysis you made to make this particular
    post incredible. Great task!

  6. Pingback: Google

  7. viagra pills says:

    This post on the topic of Search engine optimization is really good one, and the back links are in fact very valuable to market your web page, its also known as Search engine optimization.

  8. Pingback: Google

  9. viagra cost says:

    One more thing that I desire to share at this place is that, whatsoever you are using free blogging service but if you don’t update your webpage on regularly basis then it’s no more worth.

  10. Pingback: Dolce and Gabbana

  11. Pingback: xxnxx

  12. Pingback: Jimmy Choo

  13. Pingback: best adam and eve viberator

  14. Pingback: Givenchy

  15. Shaylaglums says:

    Incredible update of captchas breaking software “XRumer 16.0 + XEvil 4.0”:
    captcha recognition of Google (ReCaptcha-2 and ReCaptcha-3), Facebook, BitFinex, Bing, Hotmail, SolveMedia, Yandex,
    and more than 8400 another size-types of captchas,
    with highest precision (80..100%) and highest speed (100 img per second).
    You can use XEvil 4.0 with any most popular SEO/SMM software: iMacros, XRumer, GSA SER, ZennoPoster, Srapebox, Senuke, and more than 100 of other software.

    Interested? You can find a lot of introducing videos about XEvil in YouTube.


    Good luck!

  16. Pingback: best web development services hyderabad

  17. Pingback: property in nigeria

  18. levitra coupon says:

    You have to waste less time to search your necessary matter on world-wide-web, as today the searching techniques of search engines are pleasant. That’s why I fount this piece of writing at this time.

  19. Pingback: Playmobil kopen