The new requirement to report sales of principal residences means families with more than one property will have to be more careful, reports MoneySense.
In particular, “this new requirement may introduce a few wrinkles into the more common capital gains strategies used to minimize the amount of tax owed to the CRA.”
MoneySense offers eight tips to help those affected meet requirements and still save tax. Those include:
- remembering to report every property sale on tax returns, even if you don’t owe tax;
- keeping in mind when the CRA deems a home to be sold (e.g., when you’ve changed a home’s use from a residence to a rental); and
- establishing and keeping better records going forward if you’re a property owner.
Check out all of MoneySense’s tips.
For more on tax and housing changes, read:
Principal residence exemption: what’s changed, what hasn’t
What the BoC thinks of Morneau’s new housing measures