ARTICLE · 04 SEPTEMBER 2020

Changes Coming To The Canadian Principal Residence Exemption?

Moodys Private Client Law LLP

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Are we about to see the long-standing sacred cow of Canadian tax – the Canadian principal residence exemption – be significantly modified?

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Are we about to see the long-standing sacred cow of Canadian tax - the Canadian principal residence exemption - be significantly modified? Perhaps. Politically, it might be a tough sell for any governing party if their voter base views such changes negatively but the time for change might be ripe.

In a recent podcast that my colleague, Kenneth Keung, and myself recorded, we reviewed the existing Canadian principal residence exemption rules (including dispelling some prevailing myths that are quite common), briefly compared the Canadian rules to the United States' rules, reviewed some recent changes to the Canadian rules and mused about possible amendments. Please have a listen.

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