ARTICLE · 08 APRIL 2024

CRA Widening The Net In The Hunt For House Flippers

Wilson Vukelich LLP

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For taxpayers that have bought and sold homes, particularly if they work in construction or real estate, a CRA housing audit is undoubtedly around the corner

CanadaTax

Christine Ashton

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For taxpayers that have bought and sold homes, particularly if they work in construction or real estate, a CRA housing audit is undoubtedly around the corner. The CRA is actively engaged in a house flipper audit blitz and has conducted over 60,000 audits. This has resulted in over $2 billion in taxes and penalties assessed. Further, the CRA has broadened the scope of when a sale will be considered house flipping, deeming all sales within 1 year of purchase a house flipping. Of course, even owning a home for 2, 3, or more years, will not shield a sale from being treated as house flipping. If you or your client is at risk of a house flipping audit, you should take steps to ensure that the proper documents are at the ready.

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