Did you sell your house in 2016 or later? File a tax return and claim the principal residence tax exemption for the capital gains.
Commencing with sales in the 2016 tax year, you must report basic information, such as the date of acquisition, the proceeds of disposition (the sale), and the address, on your income tax and benefit return when you sell your home to claim the full principal residence tax exemption.
You do not have to pay any tax on the capital gain when you sell your home provided it was your principal residence for all the years that you owned it. This is only applicable if you did not use any part of it to earn income. A property may qualify as your principal residence for any year that you or certain family members lived in the house. None of your family members should have another property designated as a principal residence for that year for this to apply. For 2017, complete Form T2091 or T1255.
For more information directly from CRA, visit their site here.
Tax season starts next week! If you have any questions or want any advice, visit one of our offices or contact us at 250-744-3854.