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President/CEO Number Crunchers® Accounting Inc. Learn how to just say stuff it to this bookkeeping thing with our 'Just Say: "Stuff It" To Bookkeeping program.

Filed Your Tax Return? – What to do if you Forgot Something

By Randall Orser | Personal Income Tax

A big sigh of relief - you have filed your tax return on time!  Then you realize that in the rush to get your taxes done you forgot to claim your RRSP contribution or report self employment earnings for the year. Now you are left wondering what you should do.

Many people find the need to adjust their tax return after they have filed it and the CRA has options set up to make it as easy as possible. Most important you need to make sure that you have reported all your income as you may have to pay a penalty if you don't and it is better to report it before the CRA finds it!

If you need to make an adjustment to your tax return:

  1. Once you have filed your tax return you cannot file a new one.  You need to wait for your Notice of Assessment to arrive to make an adjustment. If you try and make changes before you are assessed it can lead to delays in processing your original return and the adjustment.
  2. You need to make any adjustments before the end of the three year limitation period usually the three years after your original notice of assessment was issued.  If you make adjustments during this period they are not usually subject to CRA discretion.  If your adjustment reduces your taxes owed or increases your refund your entitlement to this adjustment must be clear.  If you request an adjustment beyond this limitation period and it involves a refund or reduction in taxes it must be made within ten years.  Usually your adjustment will be allowed if it would have been allowed on your original return, however not all adjustments will be allowed.  Your request may be denied if the adjustments are for permissive amounts (where you did not claim an amount on purpose so that the unclaimed amount can be carried forward to use in a subsequent year such as RRSP contributions) or provincial credits that are subject to other deadlines. 
  3. You must have all receipts to support your claim, and remember you are required under the Income Tax Act to keep all your documentation for at least six years.  You may have to file this documentation with your claim, if not you should keep it handy in case you are asked to provide proof to support your claim.
  4. You can make the adjustment in a variety of ways.  You can do it yourself or through a tax professional and you can do it on-line or by mail.  If you have used certified Netfile software that includes Refile you can send adjustments through this unless you already have an assessment in progress. If you have registered for MyAccount you can make an adjustment for the previous ten calendar years through this service using the "Change my Return" option.  Keep in mind that you cannot request another adjustment until the previous one has been finalized. 
  5. If you prefer to submit your adjustment request in the mail you need to fill out a T1-Adj, T1 Adjustment Request and mail it to your local tax centre. You will need to send any supporting documents with your completed form.  
  6. Once you have asked for your adjustment you will need to wait for it to be processed which can take about two weeks online and about eight weeks by mail. You will receive either a notice of reassessment showing the approved changes or a letter explaining why the CRA did not make the changes.

Though the thought of applying for an adjustment to your tax return may feel a little daunting in fact it is pretty simple and straightforward. 

From an article by Margaret Craig-Bourdin

The Personal Tax Filing Deadline is April 30th – Some Last Minute Reminders

By Randall Orser | Personal Finances , Personal Income Tax

The deadline for filing your personal taxes April 30th is almost here.  Here are some things to remember before you start the filing process.

1.  Most Canadian residents need to file an income tax return for the previous year to pay the correct amount of income tax owed, pay back overpayment of benefits or to claim benefits.

2.  If you file late and owe money the CRA will charge you interest and penalties on the unpaid amount.  So even if you know that you will have to pay, help yourself by at least filing on time.

3.  Before you tackle your income-tax return be sure that you have all the following information on hand.

  • Information from the CRA including your notice of assessment from the previous year.
  • All your tax information slips such as T4’s from employers, as well as your investment information slips and RRSP contribution receipts from your bank.
  • Information on other income such as self-employment income.
  • Receipts for tax deductions such as medical expenses and donations.

4.  Decide how you are going to file your taxes either a paper copy or online using NETFILE, and make sure that you have the correct tax package for your province. The advantage of using NETFILE is that you get immediate confirmation that your return has been received and if you are owed a refund you will get it much faster, sometimes within two weeks of filing.

5.  If your taxes are complicated for example if you run a small business it is often better to use a tax professional to prepare and file your return, however to save yourself some money you should still spend time sorting your receipts and getting everything ready for your accountant.

6.  There are a few different ways to pay any income tax due; by mailing a cheque to the CRA, using online or telephone banking, using the CRA’s My Payment Service or making a payment at your bank.  If you have to pay your taxes by installments you can set up a payment arrangement with the CRA.

7.  Set up a direct deposit with the CRA so that your tax refund and any benefit payments are deposited directly to your bank account.

Differences Between a Tax Credit and a Tax Deduction in Canada?

By Randall Orser | Personal Finances , Personal Income Tax , Retirement

Have you ever wondered what the difference is between a a Tax Deduction and a Tax Credit? Although both can save you money on your taxes they work in different ways.

A tax deduction reduces the amount of income you have that is subject to income tax.  A tax credit reduces the amount of tax that you owe.  

A tax deduction may reduce the tax bracket that you land in thereby reducing the rate of tax that you have to pay.  The best example of a tax deduction is your RRSP contribution which reduces your income and can possibly land you in a lower tax bracket. So it is important to know that tax deductions are dependent on your tax bracket. (to see what your tax bracket is visit the CRA website.)

A tax credit is a benefit that is applied to the taxpayer who is approved for it.  All taxpayers receive the same amount regardless of their tax bracket.  To make it more confusing there are two types of tax credits: 

Non Refundable Tax Credits which will help to reduce the amount of taxes you owe unless your total tax credits are greater than the tax that you owe.  In that case you will not receive the difference back on your tax return. Examples of non-refundable tax credits you can claim include: medical expenses, public transit passes and charitable donations.

Refundable Tax Credits also reduce the amount of tax that you will have to pay.  However if you claim them on your return your will receive any excess credit due over and above the amount of tax that you have to pay.  Refundable tax credits include: GST credits, the Working Income Tax Benefit, and the Children's Fitness Tax Credit.

In Canada there are numerous federal and provincial tax deductions and credits that you can apply for that can result in a tax refund for you.  If you are not sure which deductions and credits you are entitled to claim it is best to get professional advice.

From an article by Bryan Daly and Caitlin Wood

Ways to get a Bigger Tax Refund

By Randall Orser | Personal Finances , Personal Income Tax

It's that time of year that we all dread - TAX TIME!  As much as we hate it and grumble about it most of us still have to pay our taxes,  but there are ways to reduce the amount of tax that you pay and even to earn you a refund. 

The Canadian government is always updating the tax system, so it is important that you are up to date on the credits and deductions that could apply to you.  Once you have that information you will know what receipts and documentation you need to keep to claim those expenses on your return.  Here are some deductions and credits that you may be able to use to minimize your tax bill and maximize your refund.

  1. Childcare expenses and family benefits can be used to lower your taxable income. These benefits include daycares, summer camps, overnight boarding schools and nannies. You can claim up to $8000 for children under 7 and $5000 for children 7 to 16. You have to file your taxes every year in order to continue to receive family benefits like the GST credit and the Canada Child Benefit (CCB). The CCB is a tax free monthly benefit that helps with the costs of raising children under the age of 18 and is currently up to $563.75 per month for each child under 6 and up to $475.66 per month for children aged 6 to 17. The payments depend on the number of children that you have and your adjusted family income.
  2. Vehicle expenses are something that you can claim if you are self-employed and you use your car to earn business income.  You can claim expenses such as gas, insurance, licensing and registration fees, maintenance and repairs, leasing costs, and interest on money borrowed to purchase a car.  If you use your car for both business and pleasure you may only write off the portion used for business and it is important that you keep a log book to document all your business mileage along with the date and purpose of your trip. You also need to keep all car expense receipts so you can produce them if you are audited. Salaried employees may also qualify for vehicle expense deductions for more information click here.
  3. Union and professional dues along with other employment expenses can reduce your taxable income. Employment expenses may include cell phone bills and office supplies as long as your employment contract requires you to purchase these items and you did not receive an allowance from your employer. For more information regarding the expenses you can claim click here.
  4. RRSP Contributions are a great way to lower your tax bill and get a larger refund. Your contribution limit is 18% of your income for 2020 up to a maximum of $27,230 plus any unused amounts from previous years. You can find your RRSP contribution limit in your CRA MyAccount and on your last notice of assessment. It is recommended that the more you earn the more you should contribute to your RRSP (or spousal RRSP) to reduce your tax bill.
  5. Medical expenses are another way to reduce your tax bill. You can claim expenses for dental checkups and treatment, laser eye surgery, orthopaedic shoes, and private insurance premiums.  You need to keep all your receipts in case the CRA needs to see them. For more information on eligible medical expenses click here.
  6. Many people worked from home in 2020 due to the pandemic and the government is allowing you to claim $2 per day for each day you worked from home up to a limit of $400. If you worked from home fo reasons related to Covid-19 or your employer required you to work from home, or you worked from home for more than 50% of the time for at least four consecutive weeks in 2020, and your expenses were used for work related reasons you will be eligible to claim. With this simplified method you will not need to calculate the size of your workspace or keep supporting documents or submit a form T2000s signed by your employer, as is required if you use the detailed system to calculate your expenses.
  7. Interest paid on student loans can be claimed with a few restrictions. You can only claim interest payments on loans under the Canada Student Financial Assistance Act, the Canada Student Loans Act or the equivalent in your province or territory.  You cannot claim interest on  personal loans, lines of credit or student loans from foreign banks. Your interest claim is a non-refundable tax credit so it can only used to lower your tax bill not to receive a tax refund. You can carry forward student loan interest for up to five years so it might be more beneficial to save your claim for a year when your tax bill is higher.

Who is Required by the CRA to File a Tax Return in Canada?

By Randall Orser | Investments , Personal Finances , Personal Income Tax , Retirement

The Canadian government requires most citizens to file an income tax return annually. Even if you are new to Canada or just starting your first job you still need to file a return especially if any of the following applies to you:

  1. You owe tax to the CRA
  2. If you and your spouse want to split your pension income
  3. You participated in the Home Buyer's Plan or Lifelong Learning Plan and have repayments owing.
  4. You sold your home thereby disposing of capital property in this case you must file a return even you don't have to pay capital gains tax on the sale due to the principle residence exemption.
  5. You are self-employed and you have to pay your CPP premiums or your EI premiums on your self employment earnings.
  6. You have to repay any of your Old Age Security or Employment Insurance Benefits.
  7. You have received Canada Workers Benefit advanced payments in the tax year.
  8. CRA has sent you a Request to File or a Demand to File because you have not filed recently.

Whether or not you live in Canada does you will still have to file a Canadian Income Tax return, but it will affect how you file, what income you need to report and which credits or deductions apply to you. If you come under any of the criteria above you have to file a tax return.  Also if you live abroad but you receive income from your business or investments in Canada you will need to file a return.  

Your age has not bearing on your requirement to file a tax return as long as you fit one of the criteria above. Students are also not exempt, they must file a return if they have earnings from a summer job even if they are still in school and all must file a return as soon as they start earning income.

Sometimes it is in your best interest to file a return even if you are not required to. Some examples where this would be the case are;

  • You want to claim a refund
  • Even if you have no income you may still qualify for GST credits or provincial benefits.
  • If you want to claim the Canada Workers Benefit or Canada Child Benefit.
  • If you are a student and have eligible tuition fees, they must be declared on your return even if you are not using the credits this year.  In order to transfer or carry them forward they need to be reported on your current tax return.
  • If you or your spouse want to claim the Guaranteed Income Supplement on your Old Age Security payments.

Do we Need to File our Taxes as a Couple if we are Common-Law?

By Randall Orser | Personal Finances , Personal Income Tax

The Canada Revenue Agency has specific requirements in place for married and common-law Canadians as they file their personal tax returns.

Married and common-law spouses do not file "joint" tax returns as is an option in the USA.  Each Canadian files their own return and indicates their marital status on it, and the identity of that person.  You do not get to decide whether not you claim your marital status on your tax return.  Once you are married you must include your spouse.  Once you are common-law which means you have been living together in a conjugal relationship for 12 months or immediately if you have a child then you must file as common-law you do not have a choice.

The CRA knows your true marital status based on information that you file, credits and deductions that you apply for and other information sent to them which relates to you. Since your marital status has a significant impact on your return - family incomes are combined for calculating income-tested benefits  such as the GST/HST credit or the Canada Child Benefit.  Couples also benefit from combining charitable donations and medical expenses.   If you have received benefits that you are not entitled to you will be asked to repay them with a penalty and interest and failing to indicate your correct marital status is fraud.

If you were married in the tax year for which you are filing, you must note your status as married in the "information about you" section of your return, including information about your spouse including their name, social insurance number, net income and employment status.  If your spouse claims credits such as the CCB or GST/HST or if they owe any payments you must report that as well.  This is the same for common-law couples.  

Advantages and Disadvantages of Filing as Married

1.  If you both sold homes to buy one together only one of the sold properties may be immune from taxes.  You may have to pay capital gains on one of the sales.

2.  If you are a married student with extra tuition to deduct, you may transfer your unused deductions to your spouse.  

3. If your partner's income is below a certain threshold you may be able to claim an additional tax credit.  

4. You can pool your medical expenses and apply the deduction to the partner who can use it best to    pay down their taxes, similarly with donations.

5. You can contribute to your common-law partner's RRSP which can be an advantage if you are in a long term relationship.

6. Splitting your pension income.

Filing Coupled Returns

Filing your spouse or partner's information on your return is pretty simple, however when it comes to deciding which expenses or credits to claim on each return it is more difficult and confusing.  It might be in the best interest of both you to have your returns done by a professional who knows all the ins and outs of filing tax returns for couples, so as to avoid mistakes resulting in extra charges and penalties.

Breaking Up

You also need to inform the CRA if your relationship ends as it may change the benefits due to you or the payments that you owe.  If you receive the CCB or GST/HST benefit payments, notify the CRA the month after your relationship has ended.  If you separate, you do not have to inform the CRA until the separation has lasted 90 days.   You can inform the CRA by logging into your MyAccount and completing CRA form RC65, Marital Status Change, or by contacting the CRA directly by phone.

If you live apart for reasons other than the ending of your relationship you still have to file as married for example if you live apart for work, education or medical reasons you are still considered to be married by the CRA.  Once you are married or divorced you will never be able to file again as single.

From an article by Turbo Tax November 2019

Do I Have to Report Foreign Income on my Canadian Tax Return?

By Randall Orser | Personal Finances , Personal Income Tax , Retirement

When declaring foreign income on your Canadian tax return there are different rules for residents and non-residents.  Non-residents should declare their net income earned outside of Canada in order to claim non-refundable tax credits in Canada. Their foreign income will not be taxed in Canada but it will affect the amount of credits that they can claim.

If you are a Canadian resident and have foreign business income you need to treat it the same way as Canadian business income when filing your Canadian business income tax return.  For both business and personal income you will need to use the Bank of Canada exchange rate on the day that you received the income to convert it into Canadian dollars.  If you live in Canada but work for an American client and receive payment in US dollars you will need to convert that money into Canadian dollars and it will become part of your total income for the year.  

If you have income from a foreign source some of it might be tax exempt due to a tax treaty that Canada has with some other countries (but not all of them).  The CRA will determine how much of your foreign income is exempt based on the type of income that you received, it's country of origin and other factors. You may have to pay additional tax in Canada on the amount that you earned and paid tax on in a foreign country if the tax rate here in Canada is higher than the tax you already paid.  For example if you earned $30,000 in the US and paid $5000 tax on it you would be credited the $5000 but because the tax due on this amount in Canada is $7000 you will have to pay tax on the $2000 difference. 

When you declare foreign income on your tax return you need to indicate the country the funds came from and declare the full amount of any income before foreign taxes were withheld.  You will need to check on the CRA website to see if the type of income you are receiving (such as a pension) is taxable or not according to the terms of the relevant tax treaty.  Be aware that business income, pension and other income even from the same country may be treated differently for various reasons. 

If your foreign income is not subject to a tax reduction or exemption due to a tax treaty you may be able to claim a credit for the foreign taxes that you have paid but you should not reduce the total amount of foreign income by the amount of tax that you paid in the country where you earned it.  

One common example of foreign income is U.S. Social Security Benefits - You may claim a deduction equal to 15% on those benefits.  However if you have continuously received those benefits since 1996 or if you receive benefits from a spouse who resided in Canada from 1996 to his death, you may claim a 50% deduction if you have resided in Canada since your spouse's death.  This will reduce the amount of tax due on this income and if you have been receiving it since 1996 50% is tax exempt and your taxable income will be $5000.

Not declaring foreign income is tax evasion and can result in fines and sometimes even prison.  If you are unsure about declaring foreign income correctly it is advisable to consult a tax professional.

Which Government Benefits do I Need to Report on my 2020 Tax Return?

By Randall Orser | Covid-19 , Home Based Business , Personal Finances , Personal Income Tax

Filing their 2020 Tax returns is going to be different and more complicated for many Canadians this year due to the way that Covid-19 has affected their lives.   Fluctuations in employment income, subsidies and credits from the government and the shift to working from home mean that there are different types of income that have to be reported on tax returns for 2020.  The tax filing deadline for personal taxes is has reverted back to April 30th after the extension given last year.

The CRA expects and encourages the majority of Canadians will file their taxes electronically which will allow refunds to be processed quicker.  If you are signed up for direct deposit you could get your refund in as little as 8 days. In 2019 90% of Canadians filed their returns electronically.  

Government Benefits Received in 2020 that you must report on your return include:

  1. Any covid related government benefits you received in 2020, including the Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB) and the Canada Recovery Caregiving Benefit (CRCB) all of which are considered to be taxable income.  A T4A or a T4E will be sent to you with the information that you need for your tax return.  
  2. You need to be aware that depending on your total income for 2020 you may owe some tax on your Covid benefits, especially the CERB or CESB as no tax was withheld when the payments were issued.  For the CRB, CRSB, or CRCB 10% tax was withheld at source but this may not cover your tax bill for all your income in 2020.
  3. If your total income for 2020 was over $38,000 you may have to repay 50% of the CRB you received for every dollar in net income you earned above $38,000 to a maximum of the CRB received in the year.

Government Benefits in 2020 that are not taxable include a one time GST/HST payment, the one time OAS pension payment of $300, GIS payments ($200) and the one time payment to people with disabilities up to $600.  These amounts are all tax free and should not be reported on your return.

Reporting income from your side hustle

A recent survey from H & R Block found that 25% of gig economy workers joined the gig workforce in 2020 working for companies such as Door Dash and 51% of these people will be filing as self-employed for the first time. If you are filing yourself using a tax software it is important to make sure you are filling out the correct section on your return.

Working from home in 2020

If you worked from home in 2020 and were not reimbursed by your employer for expenses including those for a home office you may be able to claim on your 2020 return for these expenses.   There are two ways in which you can claim your expenses, the new "temporary flat-rate" and the "detailed method". You can use the flat rate method if you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020.  You can claim $2 a day for each day you worked from home up to a maximum of $400.  The benefit of this method is that you do not have to produce receipts to prove your expenses and you do not have to allocate any expenses between employment and personal use, and you will not require a signed for T2200 from your employer.

If you choose the detailed method to claim your expenses you must have worked from home more than 50% of the time for a period of at least four consecutive weeks in 2020. Using this method you can deduct expenses including rent, electricity, home internet etc.  Your expenses have to be allocated on a reasonable basis by dividing your workspace into the total finished area of your home and calculating your expenses based on how much of a percentage of your home you are using as a workspace.  If you use your workspace for both personal and work then you also need to allocate your expenses based on the number of hours per week that you work.

If you have any doubts about how to complete your tax return for 2020 it might be to your advantage to have a professional prepare it.

Capital Gains and Your Taxes

By Randall Orser | Personal Income Tax

When you buy a stock or a mutual fund, you do so in hopes of making a profit. That is why it is so important to keep careful track of not only how much you paid for that security but any income it generates while you hold it. All of those factors go into your cost basis, which in turn helps you determine your true profit.

Computing your capital gain is important, since an inaccurate figure could cause you to either overpay or underpay your taxes. If you overstate your cost basis, you will pay too little in capital gains taxes, and that could invite some unwanted attention from Canada Revenue Agency. If you understate your cost basis, you will pay too much in capital gains taxes, cutting into your profit and leaving you with less money in your pocket.

Understanding Your Cost Basis

Many investors assume that the cost basis of a stock or mutual fund simply consists of the amount they paid, but in fact it is a bit more complicated than that. Many stocks and mutual funds pay dividends along the way, and those dividends are considered taxable income. When you hold a dividend-paying stock or mutual fund, you should receive a T3 or a T5 form each year showing exactly how much you received. You must then include that amount on your tax return, and pay the applicable taxes on that money.

If you fail to factor in those dividend payments, you risk understating your cost basis and paying taxes twice on the same money. When you receive a T3 or a T5 form, you should immediately add the amount shown to the amount you paid for the stock or mutual fund. Continue to add those dividend payments to your cost basis each year, since you have already paid taxes on those amounts. This is assuming you are not receiving cash for the dividends and they are just added back into the investment

Computing Your Capital Gain

The cost basis of your stock or mutual fund consists of the amount you paid, plus any brokerage commission, along with those quarterly or annual dividend payments. Once you have added up all those amounts and determined your true cost basis, it is time to compute your capital gain.

When you sell a stock or mutual fund, you should receive a T5018 form, which shows the amount of proceeds you received (some forms do show the cost and/or adjusted cost base too). Once you know your cost basis, computing your capital gain is as simple as subtracting that cost basis from the gross proceeds.

Once you know the amount of the capital gain, you can simply include it when you file your taxes. If you use tax preparation software to prepare your return, all you need to do is answer the questions about capital gains and use them to see the impact of that gain on your total tax bill.

Common Questions Asked about the CRA Principal Residence Exemption

By Randall Orser | Personal Finances , Personal Income Tax

When you sell a property you have to report the sale on your personal income tax return.  It can be confusing and expensive depending upon the appreciation of the value of your property and the capital gains tax owed.   However under the Canadian Income Tax Act the sale of a residence can be exempted from this tax under the Principal Residence Exemption (PRE).

Since 2016 the CRA required the sale of a principal residence to be reported on the seller's income tax in order to qualify for the PRE and to tighten up eligibility requirements. There are several things that Canadian property owners need to consider when filing for the PRE particularly if they own multiple properties.

Here are four questions that clients commonly ask their income tax preparers:?

1. How long do I need to live in a residence to claim it as a principal residence and qualify for PRE

The CRA does not specify an exact amount of time that you must reside in a property for it to qualify as your principal residence.  The tax rules say that it must be ordinarily inhabited within the calendar year.  The more important issue is that if a property is only held for a short period will it produce an income or capital gain when sold.  The CRA will analyze evidence such as length of time living in the property and your sources of income and real estate buying patterns to establish whether or not this is your principal residence or part of a business venture such as real estate flipping.  If the CRA challenges your claim for PRE they will question your intentions when moving into the residence and your reasons for selling.

2. Can other properties such as a cottage be designated as a principal residence and eligible for PRE?

Most properties can be designated a principal residence even those outside of Canada as long as the owner or their family ordinarily live there during each calendar year claimed.  However only one property can be designated a principal residence. Once sold any property not deemed to be a principal residence will be subject to capital gains tax for the years that it was not designated a principal property. 

There is a restriction on land size that qualifies for the PRE.  If it exceeds one half hectare it will generally not qualify.  If the property is a farm only one-half of a hectare of land plus the home would qualify for the exemption.  The remaining acreage would be subject to capital gains tax based on value appreciation.  If the excess land is required for the use and enjoyment of the property then the amount of land that qualifies can be larger, however the CRA has many restrictions before this rule can be applied.

If you own multiple properties then you can designate any of them as your principal residence for all or part of the years of ownership to take best advantage of the exemption and minimize the amount of tax paid.  In general it is thought that it makes the most sense to designate the property that has the highest average gain per year of ownership, but it is recommended to get advice from a tax professional on how best to calculate this.

3. Does a property that generates income be deemed a principal residence making it eligible for PRE?

The mandatory income tax reporting of a principal residence sale was brought in by the CRA to limit when the exemption could be applied.  It increased monitoring over:

  • Foreign property ownership
  • "Quick Flips" or short holdings on properties that may not qualify for principal residence status.
  • Properties that were not "ordinarily inhabited" every year by the owner
  • Serial builders who build and occupy a property before selling it
  • Property that is used mainly to generate income or is considered inventory which does not qualify for PRE.  This includes property rented out on either a long term or short term basis, or where the owner occupies one unit and rents out the others.  If you rent out a property for the short term such as a cottage for a couple of weeks in the summer or a house as an Airbnb while on vacation but usually occupy the property, it will qualify as a primary residence. 

4. Are there penalties incurred when the sale of a principal residence is not reported to the CRA?

According to the CRA If the sale of a principal residence is not reported the owner may be subject to a late filing penalty of $100 per month up to a maximum of $8000. In addition the exemption may be denied and the owner would be taxed on the capital gains.  Even though these rules have been in place for a number of years many people believe that if they only own one property they do not have to report when they sell it which can result in significant costs to them.

From an article by Sophie Nicholls Jones

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