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

What capital gains change is being proposed for home sellers?

The federal government has proposed changing how capital gains are taxed, but the Canada Revenue Agency's Principal Residence Exemption already shields most home sellers from that change entirely. If the home you are selling is the one you actually live in, the sale profit is not capital gains income in the first place, proposed change or not.

The proposed change raises the inclusion rate on capital gains above a threshold, and it targets secondary properties, rental units, cottages and investment real estate, not the house a family lives in. A downsizer selling a long-time Saskatoon home typically owes no capital gains tax on that sale at all, under a Principal Residence Exemption that has existed for over 50 years, long before this proposal.

Where the proposal does matter is if you also own a second property, a lake place or a rental unit, since that sale could face a higher inclusion rate if the change goes through. Confirm your specific situation with an accountant before you list, because the answer depends on which property you are selling and how you have used it.

Joel Dyck coordinates with your accountant and lawyer so the tax picture is settled before an offer arrives, not after. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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