A client sells their principal residence for $800,000 after purchasing it for $500,000. How much of the $300,000 capital gain is subject to tax?
Correct Answer
C) $0 - principal residence exemption applies
The principal residence exemption eliminates capital gains tax on the sale of a taxpayer's principal residence, provided it was designated as such for all years of ownership.
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A client owns a rental property in Calgary that they purchased for $400,000 and sold for $550,000. They claimed $50,000 in depreciation over the years. What is their taxable capital gain?
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