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.
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