Are you a homeowner in the Greater Toronto Area (GTA) or Hamilton, Ontario or Canada? If so, understanding the Principal Residence Exemption (PRE) could save you a significant amount on your taxes. At Momentum Accounting CPA Professional Corporation, we specialize in helping clients navigate the complexities of tax laws and maximize their tax savings, including applying for the PRE.

What is the Principal Residence Exemption (PRE)?

The Principal Residence Exemption allows homeowners to sell their primary residence without paying capital gains tax on the profit. This tax benefit applies to the sale of the property you occupy as your main home for all or part of the period you owned it. Whether you're in the GTA, Hamilton, or elsewhere in Canada, this exemption can save you thousands.

Eligibility for the Principal Residence Exemption

To qualify for the PRE, the property must meet certain criteria:

Ownership: You must own the property.

Primary Residence: The property must be your primary residence for the entire year or for a portion of the time you owned it.

Exemption Use: The exemption only applies to one property per family unit per year.

How to Claim the PRE

To claim the Principal Residence Exemption in Canada, including the GTA and Hamilton regions, homeowners must report the sale of their property on their tax return. As of recent updates, failing to report the sale of your principal residence can result in penalties, so it’s important to follow the guidelines accurately.

The Benefits of Working with a CPA

While the PRE may seem straightforward, the tax implications of selling your home can be tricky, especially when considering factors like capital gains on second properties, recent changes to tax rules, and reporting requirements.

At Momentum Accounting CPA Professional Corporation, our experienced team can assist you in:

Accurately reporting the sale of your home.

Ensuring your claim is compliant with CRA regulations.

Offering strategic tax advice for other potential savings.

Contact Momentum Accounting CPA for Expert Advice

If you're planning to sell your home in the GTA, Hamilton area or Canada, don’t leave your tax situation to chance. Our expert accountants are here to guide you through the Principal Residence Exemption process and ensure you maximize your savings.

Reach out to us today to learn more about how we can help you with your capital gains and tax planning.