There is usually no tax payable to CRA when you are selling your primary home also known as principal residence. Prior to 2016 CRA did not require you to report the sale of your principal residence. However starting 2016, CRA made it mandatory to report your sale of principal residence on your tax return.

If you are selling your home other than your principal residence, there are many tax implications to look out for. For example CRA could consider the profit generated from sale of your secondary home such as pre-construction unit, cottage or rental property to be either business income (100% taxable) or capital gains (50% taxable). There could be also GST/HST tax implication associated with the sale of your property.

SJ Chartered Accountant, a CPA accounting firm in Mississauga, Etobicoke & Toronto advises home sellers to seek professional help reporting your sale correctly to prevent substantial penalties & interest from the CRA.