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Tax Alerts

Changes to principal residence exemption

On October 3, 2016, Federal Finance Minister Bill Morneau announced changes which will affect trusts and non-residents owning residential property in an effort to ensure "housing markets are stable and functioning efficiently."

This would be accomplished by tightening the use of the principal residence exemption, which many believe was being abused by foreign buyers. Under the current rules, a Canadian resident individual who disposes of his/her "principal residence" may claim an exemption to shelter the gain, thereby eliminating or reducing taxes that would otherwise be payable.

Find out more about changes to principal residence exemption. [ 201 kb ]