A married couple owns two homes: one in Edmonton (purchased 2015) and one in Vancouver (purchased 2020). They want to minimize capital gains tax when selling one property. What should they consider?
Correct Answer
C) Calculate which designation provides the best overall tax result
The couple should perform a detailed calculation considering the gain per year for each property to determine which principal residence designation minimizes their overall tax liability. The optimal choice depends on the relative gains and ownership periods for each property.
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A homeowner sells their principal residence that they have lived in for 10 years. What is the capital gains tax treatment?
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A married couple owns two properties: their principal residence worth $600,000 and a cottage worth $400,000. If both properties have appreciated equally over 10 years and they sell the cottage, what tax planning strategy should they consider?