Proceeds received from the sale of one’s principal residence are, in most circumstances, not taxable, as such sales are eligible for the principal residence exemption. However, as of the 2016 tax year, taxpayers who are claiming the principal residence exemption must report the sale of their home on Schedule 3 to their return for the year. Beginning with the 2017 tax year, an additional form (Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Trust)) must also be completed when claiming the exemption.

The Canada Revenue Agency has posted information on its website to assist taxpayers who must comply with the new reporting requirements, and that information can be found at www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/sale-your-principal-residence.html.