ARTICLE · 13 JULY 2021

Is The Principal Residence An Endangered Species?

KPK Law LLP

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The government is desperate for money and is on the search for new sources of revenues to finance its deficits.

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The government is desperate for money and is on the search for new sources of revenues to finance its deficits. In anticipation of a fall election, the spring 2021 Federal Budget followed the general trend that governments spend (or say they will) before an election by announcing $101.4 billion of discretionary spending and raising the federal deficit to $154.7 billion for the 2021-22 fiscal year.

Contrary to rumours, Budget 2021 did not include measures to eliminate or cut back on the principal residence exemption (PR). Tax increases do not precede elections but follow them. We can expect them next spring after the Liberals win a majority. The exemption is rich and in the government's sights.

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