When you visit your accountant to do your tax return this year, a new rule may have a big impact. The federal government announced a change in 2016 that means the sale of a principal residence must be reported on Schedule 3 of the tax return, in order to claim the principal residence exemption.
If your home was not your principal residence for the entire period you owned it, dating back as far as 1972, you will now be forced to pay capital gains based on a new calculation.
You must get the property appraised when there is a change of use - like you set up a home business during the ownership of the home, or your cottage becomes your primary residence for a period of time - as the property is considered to be disposed of at its Fair Market Value (FMV) and then immediately reacquired at the same amount.
At Leander Property Appraisals, we can help you with an accurate, professional appraisal of the value of your home for the period when you have a deemed disposition. Contact us and we can help with a historic valuation of your property, as well as a current appraisal.
Want to know more about the new tax rules, have a read of this article from TMX Money.
Tax implications of more than one residence.
Need an appraisal? Give us a call at 905-841-1841.