Starting in the 2016 Tax Year, changes to the Principal Residence Exemption (PRE) come into effect. This change is an effort to capture speculators who were using the benefit inappropriately.
If you sell your designated principal residence, you will now have to report this information on Schedule 3 of your income tax return, including the date of acquisition, date of sale, selling price and a description of your property.
If you do not report this to to the Canada Revenue Agency, it could mean the loss of claiming the PRE. If the home being sold includes a rental unit, you will no longer be able to shelter profits from the taxman. For more information, see the CRA website: www.cra-arc.bc.ca