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?
Correct Answer
A) $0
Because the home was the couple's principal residence for every year they owned it, the whole $150,000 gain ($550,000 - $400,000) is exempt under the principal residence exemption, so the taxable capital gain is $0. The exempt portion is the gain times (1 + years designated) / years owned, which here is at least 100%. They must still report the sale and the designation on their tax return.
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Previous Question
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?
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A couple buys a resale home in British Columbia for $800,000. They do not qualify for the first time home buyers' or new housing exemption. What Property Transfer Tax must they pay?