Who Can Claim The Exemption?
In the past, both spouses’ were each allowed to claim a principal residence exemption. This meant that a married couple could have had two different properties and each spouse could have claimed a tax-free capital gain exemption on both properties.
This all changed in the early 1980’s when the Income Tax Act was changed so that only one property could be designated as the principal residence exemption for each family unit and for each year after 1981.
If a married couple purchased a properties before 1982 that qualified as their principal residences, they can claim the exemption on both properties up to 1981 and on only one after 1981.
In the past, both spouses’ were each allowed to claim a principal residence exemption. This meant that a married couple could have had two different properties and each spouse could have claimed a tax-free capital gain exemption on both properties.
This all changed in the early 1980’s when the Income Tax Act was changed so that only one property could be designated as the principal residence exemption for each family unit and for each year after 1981.
If a married couple purchased a properties before 1982 that qualified as their principal residences, they can claim the exemption on both properties up to 1981 and on only one after 1981.