Your home is likely the largest investment you will ever make. However, while most investments carry a large tax burden when you sell them for a profit, your home benefits from federal rules to encourage home ownership. As long as the property is your principal residence, you can claim an exemption on capital gains tax for any profit you receive on the sale of your home. This incentive is in place to encourage home ownership among Canadians, and can be used more than once if you move to a new home. You should always consult an accountant or tax lawyer to be certain of the tax consequences of any action, but the principal residence exemption is an excellent way to profit from the sale of your home.
Capital gains tax and the principal residence exemption
