Effective January 1st, 2016, Canadian tax-payers have a requirement to report when they sell or dispose of their Principal Residences on their tax returns. You will need to complete a Schedule 3 form, as well as submit Form T2091 when you file your personal income tax returns. Failure to report the disposition of your home will make you ineligible to claim the principal residence exemption.
Our homes form a large part of our wealth, so having it grow in value tax-free is a big benefit! Be sure to alert whoever prepares your taxes for you whenever you SELL your principal residence(s) from now on.
SHARE this information with any family or friends you know who may have sold their own homes in 2016 too!
Kelly Fagundes is a Senior Financial Advisor and Branch Manager at Manulife Securities Incorporated. She can be reached for further comment at 416 259 8222 or via email at email@example.com
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