Real Estate

Designating investment condo as principle residence to secure capital gain exemption

  • Last Updated:
  • Jul 27th, 2021 11:15 am
[OP]
Sr. Member
Mar 25, 2018
857 posts
1422 upvotes

Designating investment condo as principle residence to secure capital gain exemption

Question to the tax specialist and experienced investors:

If I have an investment condo, as the only property I own, and I declare rental income and expenses every year. I live in another property that I am renting, can I designate my investment condo as my principle residence, thus enjoying exemption on capital gain? Thanks
3 replies
Deal Addict
Feb 19, 2019
1971 posts
3097 upvotes
Stouffville ON
Yes, under certain conditions, up to 4 years in most cases with you exceptions, and the condo would need to be your principal residence at some point of time.
https://www.canada.ca/en/revenue-agency ... perty.html

https://www.canada.ca/en/revenue-agency ... dence.html

these are basic links, read up on 45(2) and 45(3) elections.
Full Time and Full Service Realtor
Jr. Member
Dec 31, 2015
154 posts
44 upvotes
I did the exact same thing with a house. I had it rented out while I also rented a different house. I lived in it for 2 months after I bought it then rented it out for 4 years.
I recently sold the property and claimed 4 years as my principal residence.
[OP]
Sr. Member
Mar 25, 2018
857 posts
1422 upvotes
Thank you guys for the link and response!

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