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Not applicable
posted Feb 18, 2023 1:04:51 PM

When I am renting a condo in Canada, can the overseas real property I sold in 2022 qualify for principal residence exemption?

I had an overseas real property since 2016, then I moved to Canada and start renting condos in 2019, and I finally sold my overseas real property in 2022. 

Concerned: I filed tax returns from 2019 to 2021, and claimed some benefits about the renting condo, such as the “Canada Housing Benefit” or “Ontario Trillium Benefit”. I am concerned because I noticed the terms of these benefits are for a principal residence, so does it mean I already reported my renting condo as my principal residence, and cannot sell my overseas real property as a principal residence?

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1 Best answer
Moderator
Feb 18, 2023 5:19:24 PM

Yes, you can claim an overseas property as your principal residence, but you, your current/former spouse or common-law partner, or any of your children lived must have lived in it at some time during the year.

 

And yes, if you’ve been claiming benefits for renting your condo, that my cause the Canada Revenue Agency (CRA) to question your principal residence claims.

1 Replies
Moderator
Feb 18, 2023 5:19:24 PM

Yes, you can claim an overseas property as your principal residence, but you, your current/former spouse or common-law partner, or any of your children lived must have lived in it at some time during the year.

 

And yes, if you’ve been claiming benefits for renting your condo, that my cause the Canada Revenue Agency (CRA) to question your principal residence claims.