An extra section has been added to the tax return that Canadians would be required to fill out in order to have their principal residence and receive a tax break; the additional unit is the Schedule 3 “Capital Gains (or Losses)”. Information pertaining to the address, information on date of acquisition and other details required for any sold home will be filled out by homeowners to have their principal residence claimed. The changes was endorsed by the government to “improve compliance and administration of the tax system” as they government said.
Rumour has it that the latest requirement that was announced back in October was established as a means of tracking home flippers – who may be lured to obtain investment properties as main residences – more efficiently. With help from this extra info provided, the government will gain better knowledge of how widespread house flipping is and possibly know the effect it has over the price of houses.
It’s obvious that the government has been capable and eager on breaking down the segments on home buying it believes are aiding to the inflation of home prices. The questioned poised right now is: Are you worried that the increased data will end up causing the further housing regulations to be aimed at investors? As we know it, other industry players has recommended such policies.