It's a question I get from people all the time....." Can I use the Principal Residence Exemption on my cottage?"
The answer is simple, but the solution is complicated. What do I mean? Well...there are some key dates to be aware of when making this decision, and it all comes down to how old the cottage is, how much the value has gone up (vs the home for example), and what your future plans are. In the attached article, you will see several key dates, and an example of an application of the exemption.
Did you know that before 1972, there was no tax on Capital Gains here in Canada!? Oh...those were the days. No chance of anything like that happening anytime soon with our spendy politicians in power over the years......