A Canadian tax provision that can eliminate capital gains tax on the sale of a property designated as the owner's principal residence for each year of ownership. The rules are strict: only one property per family unit can be designated as principal residence for any given year (since 2016), sales must be reported to the CRA, and designation involves a formula that may not fully shelter gains if the property was also rented. Changes in use (e.g., renting out a former principal residence) can trigger a deemed disposition. Consult a Chartered Professional Accountant before making designation decisions.
Related Articles
- Rental CCA Canada 2026: Can It Create a Rental Loss?
Can CCA create a rental loss in Canada? The CRA rules, exceptions, classes, and rates explained. LendCity's 2026 Capital Cost Allowance guide.
- Scaling from 5 to 20 Properties: Financing Roadmap
Scale from 5 to 20 properties: transition from conventional to commercial lending, portfolio mortgages, and creative financing strategies.
- Short-Term Rental Rules Canada 2026: City-by-City
2026 short-term rental regulations for Canadian cities: Toronto, Vancouver, Ottawa, Montreal, Niagara, Canmore, and more. Investor-focused.