The sale of the property has been reported, and it is designated as your principal residence on Schedule 3 and complete Form T2091(IND).Neither you nor a family member designated any other property as a principal residence while you owned your home.Your home was your principal residence for all years of ownership or for all years owned except one year.However, you usually do not have to pay tax on any gains if all the following conditions are met: If you sell your home for more than what it cost, you result in again. As a result, you may end up with a loss on the sale.Īs a rule, you have to report any gain on the sale of personal-use property however, you are not allowed to claim any losses.įor more information, see Personal-use property ( )Ĭapital Gains on Principal Residence (real property) When you sell personal-use property, such as a car, in most cases you do not end up with a capital gain, simply because these assets lose value over time.

The owner dies and the property passes on to successors/heirsīy and large, most people are not affected by the capital gains rules because the property they own is for their personal use or enjoyment.You leave Canada (see Dispositions of property).An option to buy or sell property expires.You cancel or settle a debt owed by someone to you.Shares, stocks, or other securities held in your name are converted.You give property (non-cash) as a gift to someone.You transfer certain property to a trust.You exchange one property for another (property swap).Some of the situations which are categorized by CRA as ‘selling of property are: However, it is only considered to have occurred or ‘realized’ when the asset is sold – an important distinction when compared to an increase in an asset’s value while you still hold it (paper gains).īy contrast, a capital loss happens when there is a decrease in asset value vis-à-vis the original purchase priceĪ capital gain may be long-term (more than 1 year) or short-term (less than 1 year) and must be claimed on income taxes.

Any increase in the value of a capital asset is a capital gain (when comparing the current value to its original purchase price).

Canada revenue agency guide t4037