Question

Would the sale of a principal home affect the taxes of an Indigenous person? (There was no difference between the IP's return and the ex-spouse's return in this regard.)

Forum|Forum|3 years ago
April 26, 2022
1 reply
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There is no indication on IP's tax information at all about exemption. Should we take it back and have the accountants look it over again?

TurboTaxSusan

If the property was the person's principal residence for the entire time they owned it, and not used for rental or business purposes, then Indigenous or not, they will not pay tax on the sale. There is no capital gain (or loss).

If the property was not the person's principal residence for the entire time they owned it, then an Indigenous person would be exempt from tax on the capital gains if the property was located on a reserve.

Please see this Canada Revenue Agency (CRA) webpages for more information: Information on the tax exemption under section 87 of the Indian Act