New Paragraphs in Reporting Letters - Sale of Principle Residence

In October 2016, the Government of Canada announced new reporting requirements for the sale of a principal residence. We have updated the various versions of the RealtiWeb sale reporting letters to include paragraphs to inform your clients of this requirement.

Disposition of Principal Residence Paragraphs Added to Sales Reports in RealtiWeb

Starting with the taxation year of 2016, the Canada Revenue Agency will require taxpayers to report on the disposition of a principal residence in their annual tax return (complete details on the CRA website). Failure to report may lead to disallowance of the principal residence exemption. In light of the severity of this penalty we believe it is a good idea to include an appropriate provision or warning in your reporting letter to the client on the sale of a residential dwelling.

The following paragraphs have been added to the standard LDD sale reports in RealtiWeb (please refer to the document list below), which are designed for residential deals only:

Disposition of Principal Residence

Starting with the taxation year 2016, individuals who have sold their principal residence will have to report the sale on their income tax return filed for the period in which the sale occurred. Taxpayers are now required to report every sale of a principal residence. Failure to report the sale of a principal residence can result in the loss of the principal residence exemption.

If you have questions about the tax treatment of the sale of your principal residence, you should discuss same with an accountant or other qualified professional.

Documents
Alberta:  Report to Seller
British Columbia:  **Report to Vendor on Completion, Report to Vendor
Manitoba:  Report to Client
Nova Scotia:  Report to Vendor
Ontario:  Report to Vendor
Saskatchewan:  Report to Vendor (Enclosing Sale Proceeds), Report to Vendor (Sale Proceeds Deposited)

If you have customized the standard LDD sale report, or have created your own sale report, you may want to add the above paragraphs into your document. You may, of course, also delete these paragraphs.