tax

Did you sell your residence in 2016? The CRA wants to know.

If you sold your principal residence in 2016, you need to be aware of new reporting requirements on this years Tax Returns.  On October 3rd, 2016, the CRA changed the reporting requirements when selling your home.  The intention of this new requirement, is to better track home-sales for capital gains purposes, especially when dealing with non-resident sales, home 'flippers' and renovators, tracking unreported GST/HST on new home sales, and unreported worldwide income.

From the CRA:

"When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. This is the case if you are eligible for the full income tax exemption (principal residence exemption) because the property was your principal residence for every year you owned it.

Starting with the 2016 tax year, generally due by late April 2017, you will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption."

Make sure you are informed when filing this years taxes - more details can be found on the Canada Revenue Agency website.

Toronto's New Land Transfer Tax - Effective March 1st, 2017

City of Toronto Council has approved changes to the Toronto Land Transfer Tax that mean additional Toronto Land Transfer Tax costs for some home buyers with a closing date on or after March 1, 2017, when it will be harmonized with the provincial LTT.

The following changes to the Toronto Land Transfer Tax were considered and approved by Toronto City Council on February 15, 2017. The changes are effective AS OF MARCH 1, 2017, for real estate transactions closing on or after this date:

  • Added an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750)
  • Added an additional LTT of 0.5% of the value of a residential property above $2 million
  • Added an additional LTT of 0.5% of the value above $400,000 of a non-residential property
  • Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725
  • Amended the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada

More details on the Toronto Land Transfer Tax, and an online calculator can be found here.