Selling your home

A gain on your principal residence is usually exempt from tax, but you must still report the sale. If you do not report it on Schedule 3 and Form T2091(IND), the CRA may refuse the exemption.

Generally, a family unit can designate only one home for a given year. If you also own a cottage or rental, the calculation needs care.

The property flipping rule

A gain on a housing unit you held for fewer than 365 consecutive days is treated as business income, with no exemption and no 50% inclusion. Exceptions include:

• A death, or a related person joining your household
• Separation for at least 90 days
• A threat to personal safety, or a serious disability or illness
• Moving at least 40 km closer to a new job
• Involuntary job loss, insolvency, or the home's destruction or expropriation

A loss on your own home is not deductible.