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

How do I downsize in Erindale without a big tax bill?

Selling the Erindale home you actually live in should not generate a tax bill at all in most cases, since the Canada Revenue Agency's principal residence exemption shields the full capital gain on a home owned and lived in for every year of ownership, with the sale simply reported on that year's return.

The bill gets big when a second property enters the picture, a rental suite or a cottage sold in the same year as the Erindale home, since that gain is fully taxable and stacking two sales in one tax year is what actually pushes people into an unplanned bracket.

On the buying side, Saskatchewan's lack of a land transfer tax already keeps a downsizing move cheaper than in most provinces, leaving the Information Services Corporation title transfer fee and legal fees, typically $800 to $1,500, as the real cost rather than a percentage tax on the purchase.

Timing which sale closes first, and getting an accurate number on the Erindale home before it lists, does more to control the bill than any tax strategy. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

Still have a question?

Ask Joel directly. No form, no obligation, and a real answer even when the answer is that now is not the time to sell.