Point of View - Home Or Cottage Or Both – The Principal Residence Dilemma

My family was recently visiting a friend’s cottage when I was asked a question that is not uncommon: “We’re thinking of selling our cottage. We should expect to pay a lot of tax, right?” The answer: “Maybe; Maybe not.” Misconceptions around the principal residence exemption can and often do lead to unwanted and unexpected consequences. The following are a few key things to keep in mind when you are contemplating selling a property. What is a...