Do I have to pay Capital Gains because I rented at the new work location until my house sold?

[smileyincanada]

I owned a house in BC for several years and it was my primary residence. When I got hired in Alberta, I had to move into a rental there because I could not afford to buy until my house in BC sold. Because the rental became my "primary residence" for the interim, do I have to pay Capital Gains on the sale of the house?

[TurboTaxSamar · Accepted solution]

You will most likely not have to pay any capital gains on the sale of your principal residence because there was presumably no change in use of your BC principal residence (i.e. from personal use to rental). In other words, if this property was your principal residence for all the years you've owned it and you did not own any other property which you've claimed as a principal residence, it will be exempt from your income. 

For more information: http://www.taxtips.ca/filing/principalresidence.htm