On October 3rd, Revenue Canada announced changes to the principal residence exemption. Starting this year, we are required to report every sale of a principal residence whether we owe tax or not. So, if you sold a home earlier this year, you’ll have to provide basic information (date of purchase, proceeds of disposition and a description of the property).
The rules around the sale of the principal residence are very complicated. Even if you actually haven’t sold the property, but changed the type of use, the sale report requirement might be triggered. It’s vital to recognize these new reporting regulations in order to avoid unnecessary taxes or penalties.
On the same note, please make sure to keep all receipts for all capital expenditures to your property.