A short time ago, the federal government introduced changes to reporting requirements for selling houses. These rules do not change the actual tax – there are still full exemptions most of the time if it’s your principal residence – but now you have to make a statement on your tax return about whether you sold a house in the prior year. The reason for this is to prevent people who are selling investment properties from avoiding capital gains taxes. When the time comes that you sell the house you live in, be prepared for what you will need to provide on your tax return the next year – this is a handy guide from MoneySense Magazine.
