CRA Home Audit
Received a CRA Letter About a Home You Sold?
If the CRA sent you a letter about a home you bought, fixed up, and sold, you are not alone.
Right now, the CRA is paying close attention to what it calls “flipper” and “builder” files. These cases often involve people who bought a residential property, made improvements, and then sold it within a relatively short period. If this happened more than once, there is a good chance your file has drawn attention.
Many people are surprised by how large the assessment can be. In these situations, the CRA might charge HST on the full sale price of the home. This could mean a tax bill of tens or even hundreds of thousands of dollars.
You may not think of yourself as a builder, developer, or house flipper. You may have renovated a home to live in it. You may have sold because your circumstances changed. You may have moved more than once in a short period of time and never imagined that would trigger this kind of response from the CRA. But the CRA may focus on the pattern of transactions rather than your reasons.
If you have received a CRA letter, audit, or HST assessment about selling a home, it is important to get legal advice as soon as you can. These cases often depend on the details, the timeline, your documents, and how you explain your situation.
Alejandro Fiszman helps individuals who are facing CRA scrutiny over residential property sales, alleged flipping activity, and unexpected HST assessments. If the CRA has contacted you, he can help.
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