SESSION OVERVIEW:

The ownership of a principal residence is an important cornerstone of family wealth building and there are significant tax advantage as well. With recent financial market volatility, many clients may have, or perhaps are thinking of selling one or more of their principal residences. Are valuations up to date and noted on the net worth statement? Have capital improvements been noted? Have reasons for sales and flips been noted? With recent new reporting and audit rules in place at CRA, advisors can help clients navigate the negative consequences that may arise.

APPROACH:

A principal residence is one of the biggest assets your client could own. Its value is a key piece of a financial plan especially because values have gone up dramatically over the years and that increase is currently exempt from capital gains tax. However, your clients need to be aware of that principal residence dispositions have been the subject of stepped up audit activities, including a verification of source of funds and improvements.

WHAT YOU WILL LEARN:

• Details and rules around the principal residence exemption
• The various financial planning strategies available with a principal residence
• Impact of the change of use of a principal residence

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.