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New Principal Residence CRA Reporting Rules

On Oct 3, 2016 the Department of Finance released new rules for reporting the use of the principal residence exemption. For all dispositions of real estate that occur on or after January 1, 2016 taxpayers will have to report the disposition of a principal residence, including the proceeds of disposition, the acquisition date, and a description of the property even if the principal residence exemption applied for all years the residence was owned. This change in reporting requirements will make it easier for CRA to track taxpayers who flip properties and claim to have lived in them and to be eligible for the principal residence exemption.

Disclaimer:

"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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