CRA

Learn how the CRA (Canada Revenue Agency) affects real estate in Canada, including capital gains, tax filing, rental income, and the principal residence exemption.

CRA

June 13, 2025


What is the CRA?

CRA stands for the Canada Revenue Agency, the federal body responsible for tax administration, compliance, and enforcement in Canada, including taxes related to real estate transactions and property ownership.

Why the CRA Matters in Real Estate

In Canadian real estate, the CRA governs income tax reporting, capital gains, GST/HST on property sales, principal residence exemptions, and rental income obligations.



Key real estate responsibilities under the CRA:



The CRA provides forms, guidance, and audits to ensure compliance. Real estate professionals and homeowners must understand CRA requirements to avoid penalties.



Understanding CRA rules is essential for all property transactions, from investment to ownership transfer and rental income management.

Example of the CRA in Action

The seller reports a gain on their secondary property to the CRA and pays applicable capital gains tax after the sale closes.

Key Takeaways

  • Canada's federal tax authority
  • Oversees real estate tax obligations
  • Manages capital gains and rental income rules
  • Handles tax exemptions and credits
  • Key to staying compliant as a homeowner or investor

Related Terms

Additional Terms

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Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

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Escrow Holdback

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Underused Housing Tax

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