Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Can I avoid paying capital gains tax when I sell my Brighton home?

If Brighton is your principal residence, the sale is generally exempt from capital gains tax under the principal residence exemption administered by the Canada Revenue Agency, so the profit is not taxed as income even though the sale must still be reported on your return.

The exemption applies for each year the property was designated as your principal residence, and since 2016 the sale has to be reported on Schedule 3 of your return even when no tax is owed, so skipping that step is a filing mistake rather than a way to avoid attention.

There are real exceptions. If part of Brighton was rented out, used for business, or was not your principal residence for the entire period you owned it, a portion of the gain can become taxable, and an inherited property or a second home follows different rules entirely.

A conversation with an accountant on your specific ownership history is worth having before you list if any of those exceptions might apply. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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