VDP or adjustment

Tax Topics
1

Hi I need advise

My accountant did submit a 45(2) for this home being converted to a rental back in 2013. I never actually received confirmation of CRA receiving It but I still have the fax transmission confirmation, from that year, and I believe that is enough proof that it was submitted.

I did my taxes myself in 2024, and did not realize that I needed to disclose the sale of my rental home that year.

I just learned that I needed to disclose this and want to do an adjustment to that year. Would it be best for my accountant to do an adjustment, or to complete the VDP and go through that relief process? The taxes will not be significant and I’m not concerned about that.

My accountant is not familiar with the VDP process and I’m just not sure which route would be the safest to go.

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Find someone who is familiar with and has a full practice in tax. This is not really an “adivice for the public” type of site as it is intended for professionals using the TaxCycle software.

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3

Depends why you want to do it. The VDP process has been simplified recently, but it’s still more work than a simple T1-ADJ, so an accountant might charge you a few hundred dollars extra to do the VDP. If the expected CRA penalties would be more than the accountant’s fees you might want to consider it.

But, as noted by @SmallBizGuy you should get an experienced accountant to look at all the details, and figure out how much it will cost you either way. Then make a decision.

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