How Does CRA Know If You Sold a House? A Comprehensive Guide

The Canada Revenue Agency (CRA) plays a crucial role in managing the financial affairs of Canadians. With the rise in real estate transactions, many may wonder, "How does CRA know if I sold a house?" This article will explore three different ways you can inform CRA that you've made a sale - through their website, mobile app, and call centre.

Informing CRA through their Website

The primary platform that the CRA uses to gather information about taxpayers' financial activities, including real estate transactions, is their official website. Here's a step-by-step guide on how to go about it.

1. Visit the CRA's official website and log in to your account. If you don’t have an account, you need to register first.
2. Once logged in, navigate to "Real Estate Transactions" under the "Financials" tab.
3. Follow the prompts to enter the details of the sale, including sale price, date of sale, and address of the property. Don't forget to input any related costs such as legal fees or home improvements that can affect your capital gains.
4. After entering the details, review the information, and submit the form.

The CRA website is designed to be user-friendly. However, if you encounter any issues, don't hesitate to seek help via the support option.

Using MyCRA Mobile App

If you prefer using mobile platforms, the MyCRA mobile app is an excellent way to report your house sale. Here's how:

1. Download the MyCRA mobile app from your preferred app store and open it.
2. Log in to your account or register if you don't have one yet.
3. Navigate to the "Real Estate Transactions" section.
4. Enter the sale information, such as sale price, date of sale, and property address, plus any related costs such as legal fees or home improvements.
5. Once done, review the details and hit the submit button.

The MyCRA mobile app gives you the freedom to inform the CRA about your property sale anytime and anywhere, as long as you have internet access.

Contacting CRA via Their Call Centre

If you are not fond of online platforms, the CRA also gives you the option of reporting your house sale through a phone call. Here's how to do it:

1. Prepare all the necessary details related to the sale of your house before making the call.
2. Dial CRA's toll-free number, which is available on their official website.
3. Once the call is answered, you will need to verify your identity.
4. Inform the CRA representative about your property sale and provide the details such as sale price, date of sale, and address of the property, plus any related costs.

Remember that wait times can be long, particularly during tax season, so try to make your call at the earliest time possible.

Conclusion

Regardless of the platform you choose - website, mobile app, or call centre - it's essential to inform the CRA when you sell a house. Understanding the process can save you from potential penalties and make your real estate transactions as smooth as possible. Remember, transparency in your dealings with CRA is the best policy.