DEFINITION of 'Principal Private Residence (Canada)'
The home in which a Canadian taxpayer or family maintains its primary residence. A family unit can have only one principal private residence at any given time. In order to qualify, the house must be owned by the taxpayer or couple, or inside a personal trust.
BREAKING DOWN 'Principal Private Residence (Canada)'
The principal private residence is exempt from capital gains tax. Virtually any type of physical residence qualifies, including houses, apartments, duplexes, cottages, houseboats, trailers or mobile homes. The land on which the dwelling sits also qualifies for the exclusion, within certain limits.