Principal Private Residence (Canada)

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.

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RELATED FAQS
  1. Do we have to pay capital gains tax?

    My wife and I are 83 years old. We will sell our home for about $400,000. Will we pay capital gains tax when moving to an ... Read Answer >>
  2. If I haven't realized capital gains from selling a primary residence in the last ...

    My husband and I owned a home, sold it in 2013, and now we are considering buying a home but are uncertain of whether we ... Read Answer >>
  3. Do we have to pay capital gains tax on the sale of our property?

    We owned our primary residence for 3 years and recently sold it.  ... Read Answer >>
  4. Will I get taxed from the sale of my parent's home?

    I bought a home with my sister two years. We did this because my parents could not put a house under their name. They now ... Read Answer >>
  5. Is it possible to make my primary residence in FL (I currently live in NY) if I have ...

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    I have to sell my home. I understand the $250,000 tax exemption. My wife recently passed away. Can I retain her tax exemption?  ... Read Answer >>
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