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
C) $0
Since this was their principal residence, the entire capital gain of $150,000 is exempt from taxation under the principal residence exemption. Canadian tax law allows homeowners to claim this exemption for their primary residence, eliminating capital gains tax on the sale.
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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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