Tax Rule Changes That Will Impact Canadian Homeowners
Tax Rule Changes That Will Impact Canadian Homeowners

* A 'Good Information to Know' article provided by realtors Val & Vince Accardi

Tax season is fast approaching, but did you remember the big change that was implemented last year that will impact every homeowner and taxpayer in Canada?

Last year, our Finance Minister Bill Morneau introduced a tax change that would require homeowners to disclose the sale of their principal residence to the Canada Revenue Agency along with any profits earned on that sale. The reason for this change is rooted in the problem that the housing market has been facing with foreign investors.

The government is looking to verify that the owner of the home resides in Canada and is living in the home in order to claim and receive the Principal Residence Tax Exemption. So, despite having to now disclose any earnings made from the sale of your principal residence, you are probably still safe from paying capital gains tax.

The federal government is looking for ways to help cool down the record-breaking hot real estate market, especially in areas of high foreign investor demand (Toronto and Vancouver).

For more information on what qualifies as a principal residence, please see the Canada Revenue Agency website to learn more.

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Associated to: Val Accardi