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Originally Posted by CorsiHockeyLeague
Houses are a special case because of the principal residence exemption. So if you inherit it from your parents and you live there, then no, you wouldn't be taxed on that sale. If you inherit it, keep your current residence and sell your parents' home, you would get taxed, but only on the increase in value between when you got it and when you sold it. If you inherit it one day and sell it the next, there should be no tax bill.
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People don't realize you can have more than one property that qualifies as a principal residence.
Assuming you inherit a tax paid up house from the parents. Your child moves in and lives in that house, you live in a condo. The house skyrockets in value, your condo increases incrementally. You may need to do an analysis and calculation to see if you'd rather save the PPRE for the house vs the condo you live in.
Typically, the PPRE selection is more for your primary home vs a vacation property that qualifies as a PPRE.
Also, part of the PPRE exemption formula is N+1. If you have a vacation property and a primary residence with nearly identical gains per year, electing both, but for different years could be in the taxpayers advantages due to the N+1 coverage.
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Originally Posted by Fuzz
But the CRA isn't in charge, we are. So if the government decides auto-filing should also be optimized for returns(great campaign message), the CRA would have to implement that.And I know it wouldn't be easy as there are choices, but perhaps it would also help to work to eliminate those and simplify.
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Yes and no. Initially, yes, you can opt out. But later on, I assume we're moving towards certain Asia or European auto filing requirements.
The returns will be auto filled, you have a time frame to review for errors and accept for filing, or failure to accept by deadline means it's considered acceptance for filing. But if there is missing info for tax transactions that you don't correct that cause you to under pay taxes, the government will destroy you on those.
Spain filing situation is an interesting case of something I think we may be moving towards... holy crap don't piss those tax guys off. Hong Kong/Singapore I don't think we are moving towards those types of auto filed returns (those governments basically have 95% of every shred of detail required for your filing). I think a zero return acknowledgement is still required.
The issue is that Canada's tax system is fundamentally a self assessment system. Until tax slips, donations, asset ownership/registry and banking info basically goes full blockchain or similar, our filing requirements are going to continue to be a ####show. Our "basic" tax returns are literally like 4-5x longer than many other countries out there. I've literally read them. I tell people there's no such thing as a simple return anymore. Straight forward at best.