Principal Residence Exemption
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Maximize tax-free gains and make the right property choices.
Michael Cadesky and Hugh Woolley explain how to apply the Principal Residence Exemption with confidence — covering qualification rules, property designations, and change of use elections to help you deliver accurate, effective tax planning.
- Understanding the Principal Residence Exemption
- Capital Property Requirement: What Qualifies and What Doesn't
- Beneficial Ownership Considerations and Implications
- Ordinarily Inhabit: Key Criteria
- Proper Procedures for Claiming the Exemption
- Principal Residence Exemption Formula Simplified
- Special Property Situations: Adjacent Lots, Integrated Units, and Duplexes
- Land Used in Business: Impact on Exemption Eligibility
- Change of Use Rules and Implications
- Partial Change in Use Considerations
- The New Flipped Property Rule and Its Exceptions
- Foreign Properties and Foreign Tax Credit Implications
- Borrowing (With Examples)
- Trust Ownership Rules and Planning Opportunities
- U.S. Citizens in Canada
- Property Rented to a Child
- Loss Considerations for Properties Owned by Estates
- Interplay Between Subsections 40(4) & 40(7)
- Probate Issues
- Common Errors and How to Avoid Them
- Resource Materials and Reference
Seminar Snapshot
This course gives you in-depth insights on how to navigate the Principal Residence Exemption rules, ensuring your property tax planning is accurate and effective. Learn how to determine property qualification, designate properties for maximum benefit, and implement critical elections for change of use situations. By mastering these skills, you will enhance your ability to preserve tax-free gains on property sales, leading to significant tax savings and better financial outcomes.
In this program, you will learn how to:
- Understand the fundamental requirements of the Principal Residence Exemption and how to properly claim it
- Navigate the rules surrounding property qualification, including capital property requirements and the new flipped property rule
- Calculate the exemption using practical examples and strategic designation approaches for multiple properties
- Implement effective tax planning strategies for change of use situations, foreign properties, and trust ownership
- Apply Principal Residence Exemption considerations to maximize tax savings and avoid costly common errors
After completing this program on Principal Residence Exemption, you will be able to assist your clients with:
- Evaluating properties for principal residence qualification and ordinarily inhabited requirements
- Strategically designating properties when multiple residences are owned
- Navigating land size restrictions and excess land considerations
- Implementing proper elections for rental conversion and change of use scenarios
- Calculating exemption benefits and optimizing claims for maximum tax savings
This course is for you if you are responsible for:
- Managing tax planning for property owners or real estate transactions
- Ensuring accurate principal residence exemption claims
- Advising clients with multiple properties or foreign real estate
- Optimizing tax outcomes for property sales and transfers
- Meeting tax compliance requirements while minimizing tax on property dispositions
Meet Your Presenters
Michael Cadesky
Michael Cadesky is the managing partner at Cadesky Tax and a committed contributor to the tax and accounting professions since 1980, earning the title of Fellow from CPA Ontario. He is a past governor of the Canadian Tax Foundation, past chair of STEP Canada and STEP Worldwide, and past chair of the CPA Canada Tax Committee for Small and Medium-Sized Enterprises. Michael is also the co-author of 11 books on tax subjects and the author or co-author of numerous papers and articles on Canadian and international taxation.
Hugh Woolley
Hugh Woolley is an independent tax consultant who has taught income tax for over 30 years for a number of different professional organizations. Hugh has written courses for CPA Canada and over 10 papers for the B.C. Tax Conference as well as papers for the CTF's National Tax Conference and STEP Canada's National Conference. From 1990–1992 he worked at the CRA's Rulings Directorate in Ottawa writing "butterfly" tax rulings. Hugh is a past Governor of the Canadian Tax Foundation.
Trusted by CPAs and Tax Professionals across Canada
This is a first time for me as well. Your firm was recommended to by one of my friends. Great source of information.
Thank you Mike, Hugh and team! I enjoyed the practical and realistic solutions to various tax issues.
Thank you ALL for such high quality courses and answering the questions in detail! So glad I found you guys!
Thank you very much for the seminars. They are very informative and helpful.
Thank you for the wonderful presentation, materials, and handling of queries as always.
This is my first time taking the Cadesky Tax Seminars. I am learning a lot and watching archived courses too. You have done a great job. Thank you so much!
I really enjoy your seminar series. Your presentations are extremely thorough and you explain complex tax issues very clearly.
The presentations are relevant. The material is easy to follow. Worked examples are excellent. It is a great value.
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