I have client who sold her house which is her principal residence. Does this client has to report it to CRA? If yes, how to report it?

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Was the property a single family home (bungalow, cottage, condo, etc.) or did it have a revenue factor (duplex, etc..).

If it was a single family home and she has not sold property before, she should be exempt from capital gains and is not required to be declared in the tax return.

If it was a revenue property or a property with a revenue producing component then she is responsible for taxable gains on the portion of the home she received income from.

She may also be responsible for capital gains if she had more than one property registered under her name for the same tax period and if she has a pattern of buying and selling homes (i.e. more than one principal residence owned and disposed)


I hope this information helps. For more detailed info you can always verify with the CRA's website.

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