On October 3, 2016 the Federal Government proposed changes to
the Income Tax Act (the "Act") and
administrative policies that will impact claiming the principal
residence exemption.
1. All dispositions of principal residences must now be
reported.
Previously, the CRA did not require taxpayers to report the sale
of a principal residence when the principal residence exemption
protected the full amount of the gain. However, for years that end
after October 2, 2016 (i.e. including the 2016 taxation year), the
CRA now requires an individual to report on Schedule 3 of their T1
income tax return the disposition of a property for which the
principal residence exemption is claimed. The information required
includes the address of the property, the date it was acquired and
the amount of the proceeds of disposition. This reporting is
necessary in order to claim the full principal residence exemption.
Dispositions include deemed dispositions, for example when you
change your
