Principal Residence Tax Reporting

Has your principal residence been sold recently?

principal residence

Principal residence sold this year?

In 2016 an administrative change to CRA’s reporting requirements for the sale of a principal residence  (PR) occured. When you sell your PR or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. This is the case if you are eligible for the full income tax exemption (PRE) because the property was your principal residence for every year you owned it.

Starting with the 2016 tax year you were required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your PR to claim the full principal residence exemption.  Failure to do so could result in penalties levied by the CRA of up to $8000.

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