Quick home flips can lead to CRA challenge of principal residence exemption 

3 days ago 8

Rommie Analytics

Canada Revenue Agency headquarters in Ottawa.

New anti-flipping rules for residential real estate (including rental properties) that came into effect in 2023 were designed to “reduce speculative demand in the marketplace and help to cool excessive price growth.”

The rules essentially prevent you from claiming the principal residence exemption (PRE) to shelter the capital gain realized on the sale of your home if you’ve owned it for less than 12 months. If you’re caught by the rule, the gain...

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