" When it comes to home or cottage ownership, the mindset is often buy it, enjoy it, maintain it (and potentially upgrade it over time), and then sell it or transfer it to the next generation. But what’s important to remember is that these properties may significantly increase in value over time, which can create a large tax liability when they get sold or passed down. This is where it may be very helpful to understand how the principal residence exemption (PRE) works, when it applies and how to effectively use it, especially when you own more than one property in Canada."
This article may be important for those who own (or are thinking of purchasing) a secondary home or cottage in Canada. It briefly outlines what qualifies as a principal residence, how to calculate the tax-exempt capital gain on your properties, and how to decide which property to designate as your principal residence.
If you have any questions or concerns about owning a secondary residence and how this relates to the principal residence exemption, do not hesitate to reach out to me.