4 common questions about the CRA’s principal residence exemption

4 common questions about the CRA’s principal residence exemption: 

How long do I need to live in a residence to claim it as a principal residence and qualify for PRE?

The CRA does not specify an exact duration of time an individual or their family members, including a spouse, common-law partner or children, must reside in a dwelling for it to qualify as a principal residence for a given year. The tax rules refer to the residence being “ordinarily inhabited” within the calendar year, which is a relatively low bar. A more significant issue is whether a property held for a short period will produce an income gain or a capital gain when sold.

Designating a Property as a Principal Residence | Revenu Québec

Designating a Property as a Principal Residence | Revenu Québec

You can designate a property as your principal residence for a given year only if you, your spouse, your former spouse or your child ordinarily used the property as a residence during that year, even if occupation was only short term.

You can designate only one property as your principal residence for a given year.

For more information on the conditions for designating a principal residence, see the section of the guide Capital Gains and Losses (IN-120-V) dealing with a principal residence.