Planning Your Real Estate Goals Ahead of Tax Season
As the calendar turns toward year-end, it’s a smart time to bring your real-estate goals into focus. Whether you’re looking to buy, sell, or simply evaluate your property position, early preparation means less stress and more options when tax season arrives.
Below are five key steps we recommend taking now, with the kinds of priorities Ontario homeowners and real-estate advisors are flagging ahead of tax time.
1. Review your current property position
Start by asking yourself:
What is your home worth now? How has the local market changed since you bought?
What changes did you make this year (renovations, improvements, additions) that may affect value or tax basis?
Are you considering a move, refinance or addition of an income property?
Getting a clear snapshot sets the foundation for decision-making. For example, if you’ve put major upgrades into your home, you’ll want to document those (see Step 4) because they can influence your cost base later.
2. Understand the tax implications of the move you’re considering
Different real-estate moves carry different tax consequences. A few things to keep on your radar:
If you sell your principal residence and you’ve lived in it the entire ownership period, the Principal Residence Exemption may apply.
If you own or plan to buy a rental or investment property, capital gains, recapture of depreciation, or change-in-use rules may apply.
Timing matters. Moves made now can affect what tax year the gains or losses land in, and whether you optimize your personal income-tax situation.
In short: know the tax story before you sign an agreement.
3. Set clear real estate goals aligned with your broader finances
This is where we work together. Ask:
Are you aiming to downsize, upgrade, or perhaps invest in a rental property?
Do you want to boost equity, reduce debt, or free up cash for other priorities (retirement, kids’ education, travel)?
How does real estate fit into your tax-year planning and overall cash-flow picture?
By clarifying your goal, we can map out the timeline and actions needed. For instance, if you’re considering selling and buying in the same year, we’ll want to plan how closing dates, moving, and tax-filing interplay.
4. Organize your documentation and track key improvements
One of the biggest slip-ups we see: homeowners or investors who don’t have full records when tax time comes. Good documentation can mean significant tax-savings or avoid surprise costs.
Here’s what to pull together:
Purchase price, closing costs, land-transfer tax, legal fees
Receipts and invoices for major renovations or improvements (kitchen remodel, new roof, energy upgrades) — these can increase your cost base.
Property-tax receipts, utility bills, and other expenses if you used part of your home for business or rented it out. (Be cautious: home-office and rental-use can affect eligibility for certain exemptions.)
If you rent part of your home or move between usage types, track dates of change-in-use carefully.
The easier this is now, the fewer headaches when you’re filing or selling.
5. Take action now, and revisit the plan annually
Tax-season preparation isn’t a one-time task. It’s about positioning ahead. Some actions you might consider now:
Have a conversation with us about whether listing your home (or buying a new one) makes sense this year or early next.
If you carry a mortgage, look at whether refinancing makes sense before year-end (subject to broader market and interest-rate conditions).
If you’re an investor, check whether the current year’s income puts you in a higher tax bracket and if deferring a sale or accelerating improvements affects your outcome.
Set yourself a yearly review around this same time: we examine where your property stands, update on major tax-rule changes (they do happen), and adjust the plan.
Let’s guide you in your year-end planning
If you’re thinking about where your home fits into your bigger picture — now or in the year ahead — let’s talk. Real estate isn’t just about “buy now or sell now,” it’s about aligning your property decisions with your financial goals, your tax-future, and your life. Contact me and we’ll walk through your options together, one step at a time.
