Click here to have your say
Starting this year, Canadians will have to fill out an extra section on their tax return, the Schedule 3 “Capital Gains (or Losses)” in order to claim their principal residence and earn a tax break. Homeowners will provide information on the date of acquisition, the address, as well as other details for any sold home claimed a principal residence.
The government claims the change was made to “improve compliance and administration of the tax system.”
However, it has some speculating that the new requirement, announced in October 2016, was established in a bid to better track home flippers who may be tempted to claim investment properties as principal residences.
With this additional data, the government will get a better sense of just how prevalent house flipping is and, perhaps, what influence it may be having on housing prices.
And as we all know, the government has been able – and very willing – to crack down on home buying segments it believes are contributing to inflated housing prices.
So it begs the question: Are you afraid this increased data could lead to further housing rules that target investors?
After all, such policies have been suggested by various industry players.
Proposed class action against B.C. says foreign buyers' tax unconstitutional
Tax implications of selling one’s home
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
With the Canada revenue agency now tracking house flippers – thanks to last year’s mortgage rule changes – are you worried further crackdowns on investors may soon come?