A provision of the Canadian Income Tax Act that eliminates capital gains tax on the sale of a property designated as the taxpayer’s principal residence for each year of ownership. Only one property per family unit can be designated as a principal residence per year. The exemption is available to Canadian residents and applies to the land ordinarily necessary for the use and enjoyment of the home (generally up to half a hectare). The CRA requires reporting of principal residence sales since 2016.
Synonyms:
PRE|principal residence tax exemption