Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Do I pay capital gains tax when I downsize in Saskatoon?

You generally do not pay capital gains tax when you sell your principal residence in Canada, since the Canada Revenue Agency's principal residence exemption covers a home you and your family have used as your main residence, the situation for most people downsizing a long-held Saskatoon home. A second property, like a rental or cottage, is treated differently.

The exemption applies to the years the property was your principal residence, so if you owned a second property at any point, or converted part of your home to rental use, the calculation gets more specific and is worth confirming with an accountant before you list.

Downsizing itself does not trigger a tax event on your principal home, but the sale proceeds still pass through legal closing, and Saskatchewan transactions close through a lawyer, with legal fees typically running $800 to $1,500.

Confirm your specific situation with an accountant, and start with a hand-reviewed valuation so you know what you are actually working with. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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