Just in from the Canadian Real Estate Association (CREA) newsletter. For the 70% of Canadians (including us Edmontonians) who own a home, it is a place to live, raise a family, and connects them to their community. Due to Canada’s tax system’s Principal Residence Exemption, when we sell our homes, any increased value or “capital gains” are not taxed. This tax break matters to Canadian homeowners. Collectively, we have about $3 trillion in home equity and our homes are often our largest financial asset.
However, starting with 2016 income tax returns, there are some changes in how homeowners qualify for the Principal Residence Exemption. Until now, the Canada Revenue Agency has not required Canadians to report on a home sale during a tax season. However, if you sold your Edmonton home in 2016 or later, you will need to complete a Schedule 3, Capital Gains of the T1 Income Tax and Benefit Return in order to report your sale.
The good news is that, in terms of taxes, nothing has changed. The same tax benefit is available to anyone who sells their home, provided the property was the principal residence for every year you owned it – even if you use part of your home for business purposes. There is no “new tax” involved, only a requirement you report the sale details on your tax returns.
As always, talk with your accountant. The small fee you pay for professional help can easily outweigh the mistake you do if filled out by yourself by either not getting a deserved refund or worse by having to pay back more taxes.
If you need more clarification, please get a hold of us thru our contact page.
Another one SOLD by Audrey Abuan & Mike Muranetz with RE/MAX Real Estate. A perfect home for a young family. This 3 bedroom offers a completely renovated kitchen with high quality cabinetry, soft close drawers, Magic Chef stainless steel appliances including microwave hood fan and dark counter tops. The main floor features a large foyer, wood burning ceramic tiled fireplace, real light oak hardwood flooring, large patio window to the fenced back yard with a covered deck, perfect for year round BBQ's and a renovated bathroom with dual flush toilet. Upstairs offers 3 bright bedrooms with newer vinyl windows, ample closet and storage space and another spa like bathroom. The basement of this home is fully finished with a large family room, laundry area and more storage. Both the furnace and hot water tank have been upgraded. Pet friendly complex, Cedar West is professionally managed and conveniently located between Whitemud Drive & West Edmonton Mall. Walking distance to Aldergrove Elementary, Thorncliff After School Care, community restaurants and other amenities. Was listed at $212,800.
Did you just buy your first home in 2016? Well, you can claim up to $5,000 (cha-ching!) for the purchase of a qualifying home in 2016 if both of the following apply:
- you or your spouse or common-law partner bought a qualifying home; and - you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
How cool is that? That $5,000 (cha-ching again!) taken off your gross income will be like money in your jeans. To get full details, go to Canada Revenue's website THEN talk to your accountant. Don't forget to share with all your first time buyer friends.
If you don't have an account, let us know and we can recommend an excellent one. Did this help with your 2016 personal taxes?
Open House on Saturday, March 18, 2017 2:00PM - 4:00PM No
Located between Clareview Campus and Hermitage Park, this home sits on a huge piece of land, perfect for anyone in need of R.V. parking, wanting to build a triple garage or loves to garden. This 2 plus 1 bedroom bi-level offers an open concept floor plan on the main floor with modern grey laminate flooring and ceramic flooring for easy house maintenance, an updated bathroom, glass encased stairwell, a kitchen with a custom made breakfast bar and a dining nook. In the basement, there is a bright large second family room with new windows, a second bathroom, the 3rd bedroom and a huge utility room with a newer furnace and hot water tank. Within a five minute commute is the family oriented River Hermitage Park, several great walking trails, Sobeys, Walmart, Tim Hortons, Bulk Barn, Canadian Superstore, EMSA North, Public Library, Indoor Swimming Pool and the fitness recreation center. Call Audrey at 780-910-5179 or Mike at 780-242-5229 or email us to view this home.
What Is Retrofitting? Retrofitting a house is simply upgrading it so that it will keep the heat in. This means adding insulation, caulking and weatherstripping, improving or replacing windows and doors, and improving the heating system. Retrofitting also means including energy-efficiency measures in all your renovation and repair activities. In our Edmonton climate, retrofitting usually makes a lot of sense. This book tells you how to go about retrofitting your Edmonton house. It deals with houses of all kinds in all parts of Canada. It does not deal with apartment or commercial buildings, although some of the information presented here may be useful. This book is designed to serve both the experienced do-it-yourselfer and the novice willing to give it a try. It is also a useful consumer guide for homeowners who intend to hire a contractor to undertake retrofit work. If you want a copy, just email us or comment below and well send you a .pdf copy.....free. If you want an actual book, let us know and we'll get it to you either in person or thru Canada post. Do you have any friends who could use this to save few bucks on your heating??
Just a reminder our Quest for Excellence Bursary program closes this Monday March 13th at midnight! All grade 12 students in Western Canada INCLUDING Edmonton are eligible including grade 12 students of RE/MAX affiliates.
RE/MAX of Western Canada has renewed the Quest for Excellence bursary program. This year RE/MAX is once again offering (16) $1,000 bursaries for a total of $16,000 to grade 12 students.
This program was established by RE/MAX of Western Canada to recognize the success and ongoing pursuits of Western Canadian students in regards to leadership and community contribution initiatives. Go to RE/MAX Western Canada and apply. Any questions, reach out to us on our contact page. Good luck!