Principle Residence Explained

When it comes to real estate, there is often some confusion over what Principle Residence means.

The Income Tax Act and HST Tax Act both have slightly different definitions of what a Principal Residence means.

The Income Tax Act says if you inhabit the premises, it is considered your principal residence (the 1-year rule is a misconception when it comes to this tax law).

The HST laws state that to receive an HST rebate on a new home, you must have lived or intend to live there for at least 12 months.

Things get tricky if you own multiple properties or try to sell your property in less than 12 months.

For more information on principal residences, send me a direct message or contact me at marioyu2@gmail.com.