Published: July 12, 2021
Last Updated: July 15, 2021
Canadian tax lawyer David Rotfleisch was featured recently in an article on onenewspage.com. In the article, he disclosed how cottage owners who are planning to sell their properties can now claim principal residence exemption. This decreases the amount of tax they owe the government for the sale of their properties.
“A property can be claimed as a taxpayer’s principal residence when that property is “ordinarily inhabited” by the taxpayer and/or his or her spouse or common-law partner during the period in which the principal residence exemption is claimed. “Ordinarily inhabited” is considered in the context of the type of property. Therefore, visiting a cottage a few times a year on vacation is considered to be “ordinarily inhabiting” the cottage. The cottage can be claimed as the taxpayer’s principal residence even if the taxpayer does not live at the cottage the majority of the year.”
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
