Sentences with phrase «reporting of principal residence»

Not exact matches

Nor did he report the sale of his cottage in 2014 because he correctly understood that a cottage can also generally qualify as a principal residence.

Mr. Rosenberg also pointed to last October's announcement by Finance Minister Bill Morneau that sales of a principal residence must be reported on one's tax return, whether or not tax is owed on the gain.

And the taxman has not required Canadians to report the sale of a principal residence if the PRE will shelter the full gain from tax.

Included in a package of measures to slow down the housing market was a new rule requiring people to report the sale of a principal residence on their tax return starting in 2016.

If the gain from the sale of a property is not reported on your tax return, it will be assumed that this was your principal residence for the years you owned it, precluding you from using the exemption for your other property for the years of overlapping ownership.

CRA Requirements — Canada Revenue Agency will require all taxpayers to report the sale of property or properties where the Capital Gains Tax exemption is claimed as a principal residence.

Remember, reporting principal residence dispositions is a requirement starting with the 2016 tax return and there are significant penalties if you fail to complete the second page of Schedule 3, even if the gains are exempt.

For most Canadians, the new requirement to report the sale of a principal residence will be nothing more than a compliance exercise — but one shadowed by the threat of unrestricted audits and sizeable penalties.

Davies points out that «failure to report a principal residence sale on a tax return for the year of sale can be cured by late - filing a form.

«For most Canadian residents, the new proposed requirement to report the sale of a principal residence will be a compliance exercise, but an important one,» says John Sliskovic, private client services tax leader at Ernst Young LLP.

Though this does not seem like much, the report argues that the expected after - tax return is closer to six per cent given that there are no capital gain taxes on the sale of a principal residence.