Tax time is just around the corner! Here are a few real estate tax tips that may be relevant to you (or your family and friends).
DID YOU SELL YOUR PRINCIPLE RESIDENCE IN 2021?Many sellers have been fortunate to realize some big gains on the sale of their home. Even though the gain on your principle residence is deemed to be tax-free, you should know that CRA adjusted the rules a few years back, and you must now disclose the sale on your income tax return. If you do not disclose and designate the property as your principle residence, you risk losing the tax-free status! Please ensure you inform your accountant about this very important transaction (and any other real estate transactions as well). If you missed doing this in previous years, be sure to inform your tax preparer so they can amend your previous return and minimize any penalties. DID YOU MOVE FOR WORK IN 2021?
If you relocated for work, (a minimum of 40 km away), then you may be eligible to write off moving expenses, mortgage penalty fees, and any fees incurred in the sale of your home (ahem, this includes realtor fees 😉) as well as some expenses incurred in the purchase of your new home (i.e. legal fees).
If you or your tax preparer has any questions, please have him or her give me a call. I’d be happy to help in any way.
I look forward to continuing to serve you as your trusted real estate professional.