Tax Season And The Sale Of Your Home
Posted On: 12/01/17 - 0

New CRA Requirements On The Sale Of Your Home

On October 3, 2016, the government announced a change to the CRA’s reporting requirements. This includes the sale of your home and your tax return. When you have sold your home in the past, you did not have to report the sale on your tax return.  

What is Changing About Reporting The Sale Of Your Home?

Starting with the 2016 tax year, you will now be required to report basic information when you sell your home.  The information required for your return is date of sale, proceeds of sale and description of the property.  During the 2016 tax year and moving forward, individuals who sell their home will have to report the sale. 

What Should I Do If I Sold My Home And Forget To Report It On My Tax Return?

If you forgot to report the sale, it is very important to ask your accountant to amend your return for that year. The CRA will accept a late or an amended report in certain circumstances, but a penalty may apply.
The penalty could be as high as $8,000.00

What If I Used Part Of My Home For My Business Or To Earn Rental Income?

If you only lived in a part of your home and used the other part to earn or produce income, you may have to amend the selling price and the adjusted cost. You can do this by using square footage as long as the split is reasonable.

For more information on how the sale of your home affects you this tax season, please contact our office and ask for Cheryl.  If you have a business, and need help with your corporate taxes or bookkeeping, we do that too.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297

cheryl@padgettnw.com