Does the CRA flipping reporting have you worried?

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?

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. 


Related stories:
Proposed class action against B.C. says foreign buyers' tax unconstitutional
Tax implications of selling one’s home
 

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COMMENTS

  • by MIke 2017-03-08 9:16:24 AM

    Worried....not declaring income from flips is tax fraud. I would be more worried if I was defrauding CCRA and was always watching out that they would catch me and put me in jail.

  • by 2017-03-08 2:30:55 PM

    This article is ridiculous. Worried about what? If you follow the rules with your principal residence, there is absolutely nothing to be worried about. The people who flip as a business and don't declare this income should be accountable and should pay tax owing. They are ruining it for others. It's about time that CRA started tracking this.

  • by mk 2017-03-08 9:05:30 PM

    flipping should have been addressed by the CRA a long time ago, there is a large number of people who have
    been flipping properties for years, without adding value and have avoided paying any tax.
    This means that the end user, ultimate buyer, our kids can't afford housing because of the huge expenses and profits
    built into these flips which artificially raise the buy in price.
    real estate agents have been the worst offenders.

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