Principal Residence Exemption | What You Need To Know!
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- Опубліковано 14 вер 2021
- What is the principal residence exemption?
Who is it for?
How do you claim it if you are eligible?
We answer all of these questions in this video.
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Do you have more questions? Comment below or reach out to our trusted lawyers for personalized advice here: parrbusinesslaw.com/contact
Thanks so much Steve. Here are my confusions and apologies as I've never done this before.
1. I sold my home in September and moved briefly into a cabin for two months until I bought my current home in November.
2. Do I register both? Where do I put them in my forms?
3. What are they expecting me to put down? Address and final sale price and date?
Thanks in advance!
Thanks for your inquiry! Your specific questions require advice; please ask your accountant.
Maybe include information on how to report when property jointly held by spouses. Do they both report? Do they divide the selling price by 50%.
It can be split 50 \ 50 - Sch 3 Capital gains and the relevant forms (T2091\T2155) all have areas to designate share structure
Thanks for the info! Is it true you need to live in the house for over a year to apply for this exemption?
Hey there! No. It needs to be "ordinarily inhabited". What constitutes "ordinarily inhabited" is nuanced.
Contact us at www.parrbusinesslaw.com/contact for more information!
Hello, i lived in my property for 7 years, it was deemed by principle residence. However, a year before I sold it, I rented it out for one year. Does the capital gains tax apply for the entire period from the time i purchased the property or only for the one year before I sold it?
Ask your accountant/lawyer. PRE is nuanced. You need professional advice. For more info reach out to us here: www.parrbusinesslaw.com/contact
When can you start renting your primary/ principal residence . ? Or how to do this ? I don’t live here except summer vacation as am a university student
Hey there! Even if you are only resident there for a portion of the year, the property may still be considered your principal residence. For more info reach out to us here: www.parrbusinesslaw.com/contact
Hello. I live in Arizona and about 2 years ago I turned my condo it into a rental property and its being rented ever since. Before it was rented, I lived in it for 2 years. I plan on selling this place next month. Do I still qualify for the 2 out of 5 rule although the property has been being rented for the last 2 years?
Ask your accountant/lawyer. PRE is nuanced. You need professional advice. For more info reach out to us here: www.parrbusinesslaw.com/contact
For #3, what if you live in the home but rent out the basement?
You can rent out a portion of your home without disqualifying yourself from the PRE. For more info contact us here: www.parrbusinesslaw.com/contact
How about Principal Residence Exemption on death and the home is left to my family.
This is not advice for your situation, but hypothetically if the property qualified for the PRE at death of the property owner, then the Estate doesn't pay capital gains tax (nor do the beneficiaries of the home). It's a tax-free disposition.
Contact us for guidance on your specific situation www.parrbusinesslaw.com/contact