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

What taxes will I owe when I downsize in Saskatoon?

On the sale of a principal residence, the Canada Revenue Agency's principal residence exemption means most Saskatoon downsizers owe no capital gains tax at all, provided the home has been their primary residence for the years they owned it, though the sale still has to be reported on that year's tax return.

The costs that actually show up at closing are not income tax. A Saskatchewan lawyer handles the title transfer through Information Services Corporation for a fee typically between $800 and $1,500, seller closing costs including commission generally run 4 to 6 percent of the sale price, and Saskatchewan charges PST on the mortgage insurance premium if the next purchase needs CMHC, Sagen or Canada Guaranty coverage.

If part of the home was rented out, used for a business, or if it was not your principal residence for the whole time you owned it, a portion of the gain can become taxable, and that calculation is specific enough to your situation that it belongs with a tax professional, not a general answer.

Joel Dyck works alongside Saskatoon lawyers and can refer you to a tax professional as part of the valuation process, so the numbers on both sides of the closing are accounted for before you list. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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