# Changes to Capital Gains



## sags (May 15, 2010)

It sounds like the government is implementing changes to capital gain exemptions for personal homes.

All home sales must be declared to the CRA on yearly tax reports, and an exemption must be applied for.

The CRA will coordinate with Provincial and Municipal data bases on all sales.

They hope to put an end to flipping and undeclared capital gains.

_It’s a first in Canadian history. You’ll have to prove your home is your home. If you don’t, the money made on its appreciation will be fully taxable. Starting immediately, you must disclose to the CRA when you bought the property, and describe it. You’re required to reveal on your tax return what you sold it for. To avoid paying tax on your home’s sale proceeds, a Schedule must be filed with your taxes. If you sell the house and don’t report it, the CRA will have the right to assess a penalty of up to $8,000, plus tax you on the gain._

www.greaterfool.ca


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## AltaRed (Jun 8, 2009)

A step in the right direction. Up to now, it seemed to be a completely voluntary process full of loopholes.


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## Nerd Investor (Nov 3, 2015)

From what I can tell, there is really nothing changing here beyond the required reporting and enforcing of the existing rules versus them being loosey-goosey about it.


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## nobleea (Oct 11, 2013)

I'd add an extra '0' to the penalty. If someone is making 80-100K per flip and not declaring any of them, the CRA would have to catch 9 out of 10 of the sales before the penalty would make you lose money. All sales are publicly available for a fee, but the sale price may not be included (just the mortgage value).

Make it an 80K penalty, and then it's a coin toss whether they make any money or not by trying to sneak it through undeclared.


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## Eder (Feb 16, 2011)

This has been the only thing that JT did that I approve of.


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## My Own Advisor (Sep 24, 2012)

Great step forward. Stop this house flipping madness.


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## Market Lost (Jul 27, 2016)

Nerd Investor said:


> From what I can tell, there is really nothing changing here beyond the required reporting and enforcing of the existing rules versus them being loosey-goosey about it.


If you are a resident, this is true, but they are going further for non-residents by disallowing the exemption all together. It's the easiest way to target foreign flippers without affecting anyone else.


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