Taxes and principal residence
The principal residence designation and the 365-day rule.
General guidelines, to confirm with an accountant or a tax specialist.
Your principal residence
The capital gain on your principal residence is generally not taxable, thanks to the exemption. You must still report the sale in the year it takes place: Schedule 3 and form T2091(IND) federally, form TP-274-V with Revenu Québec.
Another property
Cottage, second property, rental building: in general, half of the capital gain is taxable. The principal residence designation can reduce or eliminate the tax, but for only one property per year.
The anti-flipping rule
If you owned the property for less than 365 consecutive days, the profit is generally treated as business income, fully taxable, and the exemption is denied. There are exceptions for certain life events, such as relocating for a job, a separation or a death.
Your moving expenses
Some are deductible, under certain conditions. Ask your accountant.
Leaving Quebec or Canada?
Tax rules and the payment of the sale proceeds may change for a non-resident. Talk to your accountant and your notary before you list.