5-minute read

April 22, 2025

🚨 Reminder! The tax deadline is April 30, 2025!

Don’t leave it to the last minute. If you bought or sold property in Canada in the past year, it’s essential to know how to prepare your taxes properly. Here’s your complete guide to help you get ready!

What Do You Need to Know if You Bought or Sold Property?

If you recently moved or made a real estate transaction, there are specific tax considerations you should keep in mind. In 2025, the Canadian Tax System is straightforward but complex, and real estate is one area where many issues can arise. Here are the key points you should know:

Selling Property:

• Capital Gains: If you sold your property and made a profit, that gain might be subject to tax. However, if it’s your primary residence, you might qualify for the primary residence exemption.

• Important Forms: Make sure to complete Form T2091 if you sold your primary residence. Failing to do so may result in the loss of that exemption.

• Other Properties: If you didn’t sell your primary residence, capital gains could be taxed at 50% of their value.

  
  

Buying Property:

• Property Transfer Tax: In several provinces, there is a property transfer tax paid at the time of purchase. The amount varies depending on the province and the price of the property.

• Mortgage Interest Deductions: While you cannot deduct mortgage interest if you buy a property to live in, you might be able to take advantage of this deduction if you buy a property as an investment.

If you sold or bought a property last year, make sure to have all the documents ready for your tax filing.

Get Ready for the Tax Deadline: April 30, 2025

Here are some crucial steps to ensure you’re prepared for the tax deadline:

1. Gather Your Documents

You have until April 30 to file your taxes, so start now. Make sure you have all your T-slips (like T4, T5), receipts, and any relevant income or deduction documents. If you bought or sold property, also have your property deed and property tax payment receipts on hand.

2. Update Your Personal Information

It’s important that your information is up to date with the Canada Revenue Agency (CRA). Ensure your address, direct deposit account, and marital status are correct in their system. This will prevent delays in receiving any refund or benefits.

3. Check for Benefits and Credits

You may qualify for tax credits! For example, if you worked, you might be eligible for the Canada Workers Benefit, or if you have medical expenses, they could be deductible. Review all the potential credits you may be eligible for this year.

4. Use CRA’s Online Tools

Signing up for “My Account” with the CRA is a great way to stay on top of things. You can track your return, access past tax information, and much more. It’s an essential tool to help you stay organized.

5. File On Time

The deadline to file your taxes is April 30, 2025. If you are self-employed, you have until June 15, 2025, to file, but any balance owing must still be paid by April 30. Don’t let the deadline pass you by.

6. Choose Your Filing Method

You can file your taxes using CRA-certified tax software, file online, or work with a professional. If this is your first time filing, or if your situation is complex, working with a tax professional might be the best choice.

⚠️ Tips for Buyers and Sellers in 2025

• Don’t ignore capital gains. If you sold your property, make sure to report any capital gains properly, even if it was your primary residence.

• Consider tax credits like the Canada Workers Benefit and other deductions that could lower what you owe.

• Keep all receipts and documents related to your property, especially if you made improvements, bought as an investment, or paid property transfer taxes.

Need More Details?

You can find more helpful information on the official Canadian government website at Canada.ca/taxes. If you have any doubts, don’t hesitate to consult a tax professional to ensure you’re making the right decisions.

Conclusion

Don’t let the stress of taxes overwhelm you! With a little preparation now, you’ll avoid complications later. Remember, the tax deadline is April 30, 2025. Make sure you’re ready for this date and take advantage of any credits or deductions you’re eligible for, especially if you bought or sold property recently.