With the current rate of activity in the Toronto housing market it is no wonder many people are considering selling their principal residence, rental property, or vacation property.
The next logical question is: "Do I have to pay any tax, and if so, how much?"
Many factors can affect the answer, such as:
- The number of owners that are listed on the title.
- Where the money came from to buy the property.
- Was it your principal residence for all the years it was owned?
This year, a new reporting requirement came into effect requiring you to report your sale of property, even on your own home to confirm that you do indeed qualify for the principal residence exemption.
Penalties of up to $8,000 can apply if you forget to report this to the CRA.