Did You Sell Your Home in 2018? What You Need to Tell the CRA

February 25, 2019
Tax

Did You Sell Your Home in 2018? What You Need to Tell the CRA

Did you sell your home in 2018?  If so, did you know that you need to report the sale of your principal residence on your 2018 income tax return? In many cases where a person sells their residence it is possible to avoid paying income tax on the increase in value between the time of acquisition and the time of sale (often referred to as the principal residence exemption). Before 2016 no action was required on the part of the homeowner to qualify for the principal residence exemption, however, it is now necessary to report the sale in Schedule 3 of your personal income tax return and to complete Form T2091. If the sale is not reported, the principal residence exemption may be forfeited.

If you sold your home in 2016 or 2017 and failed to report the sale you may still be able to amend your tax return to claim the exemption. For more information click here.

The Canada Revenue Agency has recently indicated that they may accept late-filed designations and amendments without a penalty being imposed (the penalty would otherwise be the less of $8,000 or $100 for each full month late).

If you have questions about how to claim the exemption please contact Rami Pandher. For questions related to real estate transactions please contact Gordon Van Vliet.

Gordon Van Vliet

Gordon Van Vliet

Gordon “Gord” Van Vliet is a partner in the firm’s Real Estate and Business practice groups with nearly 20 years of experience helping public and private developers build and manage many large properties throughout Alberta and British Columbia. He provides strategic counsel on a broad range of complex commercial real estate transactions and structures, including commercial and residential land development, sales and acquisitions, mergers, leasing and property management, co-ownership, partnerships, secured lending, construction and municipal planning.

Rami Pandher

Rami Pandher

Rami maintains a general income tax practice, with a focus on corporate taxation and reorganizations, mergers and acquisitions, and international tax matters. Rami also practises in the areas of personal taxation, estate planning, and trust taxation for individuals and high net-worth families. Rami’s practice also focuses on tax litigation and dispute resolution with the Canada Revenue Agency and Department of Justice. Rami has appeared before the Tax Court of Canada, Federal Court of Canada, and Alberta Court of Queen’s Bench.

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