Principal Residence Exemption?
(October 14, 2016 )
I just recently learned from my local accountant that there is an "administrative change" to Canada Revenue Agency's reporting requirements for the sale of a principal residence. Starting this year, everyone is now required to report the sale of their principal residence. Previously, this was not required. Only when you disposed of property that was either investment, recreational or other, did capital gains tax apply. Now the public will have to prove a "full principal residence tax exemption" by designating this property as their primary residence on each tax return.
Personally, I am not too happy to hear about this.
The future implications for more taxation on my personal home investment is worrisome.
If you want more information, go to the CRA web site and search "principal residence".
Perhaps this would be a good time to contact your MP and share your opinion now.