Sales of Principal Residence must be Reported in 2016 to CRA

For the 70% of the Canadians who own a home, it is a place to live, raise a family, and connects them to their community.

Due to Canada's tax system's Principle Residence Exemption, when we sell our homes, any increased value or "capital gains" are not taxed. 

This tax break matters to Canadian homeowners. Collectively, we have about $3 trillion in home equity and our homes are often our largest financial asset.

However, starting with 2016 income tax returns, there are some changes in how homeowners qualify for the Principal Residence Exemption.

Until now, the CRA has not required Canadians to report on a home sale during a tax season. However, if you sold your home in 2016 or later, you will need to complete a Schedule 3, Capital Gains of the T1 Income Tax and Benefit Return in order to report your sale.

Here is an article by the Fraser Valley Real Estate Board explaining the change in tax filing requirements.

For more information from the CRA, click here.