In Canada, generally any profit on the sale of a principle residence is a tax free capital gain any expenses incurred are NOT tax deductible

How does a property qualify as your principle residence.

A property qualifies as your principal residence for any year if it meets all of the following four conditions:

  • It is a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit owned by that corporation.
  • You own the property alone or jointly with another person.
  • You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year.
  • You designate the property as your principal residence.

For futher information please visit the CRA website at