𝐈𝐟 𝐲𝐨𝐮 𝐬𝐨𝐥𝐝 𝐚 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐥𝐚𝐬𝐭 𝐲𝐞𝐚𝐫, 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐝𝐞𝐬𝐢𝐠𝐧𝐚𝐭𝐞 𝐭𝐡𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐚𝐬 𝐲𝐨𝐮𝐫 𝐩𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐜𝐞 𝐨𝐧 𝐲𝐨𝐮𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐭𝐚𝐱𝐞𝐬 𝐭𝐨 𝐚𝐯𝐨𝐢𝐝 𝐩𝐚𝐲𝐢𝐧𝐠 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐬𝐚𝐥𝐞.
A principal residence is a housing unit that is a house, a cottage, a condominium, an apartment in an apartment building, an apartment in a duplex, a trailer, mobile home or a houseboat.
In addition, the housing unit 𝐦𝐮𝐬𝐭 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐟𝐨𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐟𝐨𝐮𝐫 𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬 each year to be designated as a principal residence:
1. It is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation.
2. You own the property alone or jointly with another person.
3. You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year.
4. You designate the property as your principal residence
You can designate only one property that you own as your principal residence each year, so it is advisable that you 𝐝𝐞𝐬𝐢𝐠𝐧𝐚𝐭𝐞 𝐭𝐡𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐚𝐬 𝐲𝐨𝐮𝐫 𝐩𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐥𝐚𝐫𝐠𝐞𝐬𝐭 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐠𝐚𝐢𝐧.
Don’t forget to report the sale on your income taxes this year as monetary penalties may apply if the sale is not reported.
𝐓𝐡𝐚𝐧𝐤𝐬 𝐟𝐨𝐫 𝐰𝐚𝐭𝐜𝐡𝐢𝐧𝐠! 𝐅𝐞𝐞𝐥 𝐟𝐫𝐞𝐞 𝐭𝐨 𝐜𝐚𝐥𝐥 𝐨𝐫 𝐭𝐞𝐱𝐭 𝐰𝐢𝐭𝐡 𝐚𝐧𝐲 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐲𝐨𝐮 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐨𝐧 𝐭𝐡𝐞 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐚𝐥 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐜𝐞 𝐄𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧!
𝐄𝐦𝐛𝐞𝐫 𝐑𝐞𝐚𝐥𝐭𝐲 𝐆𝐫𝐨𝐮𝐩