Remember to Report the Sale of Your Principal Residence. Canada 150 Recommendation #135

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The sale of your principal residence is not a taxable event, but the sale must be reported on your personal income tax return.

Starting in 2018, the Canadian government is requiring that principal residence sales be reported on your personal income tax return. The information is not difficult — you need the year you bought the property, whether it has always been your principal residence and how much you sold it for.

If you report the sale on your tax return then there is no tax on any gain. If you fail to report the sale, then it is possible that you will not be entitled to the principal residence exemption.

Failing to report a sale of a principal residence is not a mistake you want to make, so be sure to report all sales of property on your personal income tax return.

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