I sold my HOUSE, and someone said I have to declare a capital gain – is this true?

Starting with the 2016 tax year, individuals who sell their principal residence have to report it on their tax returns. Reporting will be required for sales that occur on or after January 1, 2016. If this was your principal residence the entire time you owned it, capital gains will not apply. If you sold your home on or after January 1, 2016 you must advise me of, the address (including postal code), acquisition year (the year you purchased the home you sold) and the price you sold it for (minus legal & real estate fees). Failure to do so may result in heavy penalties.

However, you may have a capital gain if:

a) at any time while you owned the home, you rented your home or a portion of your home to a tenant

b) you own another residence that is not your principal residence (ie cottage)

c)  your home was attained from a relative as part of an estate and was a rental property when you took ownership of the home

You can use CRA’s form at this link :  T2091 to calculate a capital gain.

You only need to complete form T2091 IF you have a capital gain.  If you sold your home for less than what you paid for it, and a) b) or c) applies to you, and you have loss, you do not have to complete this form.  But you still have to report the sale on your tax return.

Posted in: CAPITAL GAINS