He actually needs to ensure that the issuer cancels the T4A, if the slip is not properly cancelled and he doesn't report he will be re-assessed for taxes owing. He maybe able to prove it is not taxable but it will be a battle, there will be no issues if the slip is cancelled properly.Clueless Fox wrote: ↑ I would notify the realtor who issued you the T4A about this and also not report for your taxes. You’re correct, there should be no tax implications.
In the unlikely event of an inquiry from CRA you can prove that your purchase was of a primary residence and show corresponding proof (bills, ID’s, etc). You can refer to the ruling that I was directed to as well.
All the best
Full Time and Full Service Realtor