Principal Residence Exemption

Question 1

Calculate the taxable capital gain

Answer 1

=(capital gain-exemption) x 50%

Question 2

PRE exemption

Answer 2

(# years owned as principal residence + 1 / # years after 1971 + 1) x (sale price - acb)

Question 3

PRE exemption - which property to designate

Answer 3

The property with the higher capital gain amount per year owned. Remember years of ownership are inclusive + 1