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06 October 2016

Canada's Finance Minister announces proposed amendments to principal residence exemption rules for trusts and nonresidents

Federal Finance Minister Bill Morneau announced on October 3, new measures relating to the capital gains tax exemption on the disposition of property that may be designated as a principal residence. The amendments revise the calculation of the principal residence exemption for individuals who are nonresidents of Canada throughout the year of acquisition of the property as well as certain trusts that will no longer qualify to designate a property as a principal residence after 2016. Additional amendments include an extended assessment period for taxpayers who do not report the disposition of the property on their tax return.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1707

Document ID: 2016-1707

 

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