A couple purchased their home in Vancouver for $800,000 in 2018 and sold it for $1,200,000 in 2024. They lived in it as their principal residence for the entire period. How much capital gains tax will they pay?
Correct Answer
C) $0 due to principal residence exemption
Since the property was their principal residence for the entire ownership period, the couple can claim the principal residence exemption and pay no capital gains tax on the $400,000 gain. The exemption eliminates capital gains tax on the sale of a primary residence.
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A couple owns two properties: their principal residence worth $800,000 and a cottage worth $300,000. If they sell the cottage for $450,000, what strategies could minimize their tax liability?
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A couple purchased their principal residence for $400,000 in 2020 and sold it for $550,000 in 2024. What is their taxable capital gain?