CRA Rules and Taxes

Did you know?

Most Canadians pay their fair share of taxes, says CRA, but the agency has detected some who are avoiding paying taxes related to real estate transactions.

According to CRA audits over the last three years, there have been “additional taxes related to the real estate sector,” to the tune of $592.6 million.

The agency says “buying a first home represents a great accomplishment” but that it’s committed to “taking concrete action against those who break the rules.”

QUICK TAX FACTS

• Builders of new and substantially renovated residences or rental properties are required to collect and remit the GST/HST to CRA when they sell, rent out for the first time or appropriate the property for personal use. Additionally, purchasers of new residences must follow the rules when applying for new housing rebates.
• Property flipping is not illegal, so Canadians have the right to purchase and sell property for a profit. However, the income resulting from these transactions is considered business income and must be reported.

If you have any questions about how the CRA rules affect the buying or selling of your home, give me a call and we can discuss the regulations.

Source: Advisor.ca