*The Commerce Journal>>>Canada Taxes

How long do i have to own my principle residence before i dont have to pay capital gains if i sell it.?

You must own and live in that residence DURING SOME PART OF A YEAR, and you can only claim one tax free principal residence exemption each year.

To designate a property as principal residence, an individual must own the property, either solely or jointly with one or more other individuals. In addition, the owner, his or her spouse, former spouse, or children must also ordinarily inhabit the residence during some part of the year.

Each family unit may designate only one residence as their principal residence PER YEAR after 1981. A family unit includes the owner, his or her spouse (except where the spouse was throughout the year living apart from, and separated under a court order or written separation agreement), and unmarried minor children. In the year two individuals become spouses of each other, each person can still designate a separate principal residence for that year. Prior to 1982, each member of the family unit may designate a separate home as his or her principal residence EACH YEAR.

Essentially 2 years or 24 months of the 60 months before you sell.

There is no length of time.

However, if you have a habit of "flipping" houses, CRA may determine that you are carrying on a business and deny the principal residence exemption.

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