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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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If you sell a house for more than you bought it for do you

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If you sell a house for more than you bought it for do you have to pay tax on the profit? I live in Canada and I someone told me capital gains are not taxable.



In Canada, there is no tax on the sale of property which is classified as your principal residence.


To qualify as a principal residence certain criteria must be met:

- The taxpayer must own the housing unit, either jointly or solely.
- A family unit may only have one principal residence.
- The land upon which the housing unit sits cannot exceed one acre and any excess is not considered part of the principal residence unless the taxpayer can prove it is necessary for personal use and enjoyment.
- The unit must be ordinarily inhabited in the year by the taxpayer or by his/her spouse or common-law partner, former spouse or common-law partner, or child.
- The unit must be designated as the taxpayer's principal residence for the year.


If you meet these qualifications, then no tax is due on the gain from the sale of your home.


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