What you should know If you bought your home in 2016 or plan to buy a home,
the Canada Revenue Agency (CRA) has information that may help you.
Principal Residence Exemption:
Sold your principal residence in 2016? Then you now need to file a tax return and claim the principal residence exemption for capital gains.
Starting with sales in the 2016 tax year, you are required to report basic information (date of acquisition, proceeds of disposition (e.g. sale) and address) on your income tax and benefit return when you sell your home to claim the full principal residence exemption.
You do not have to pay tax on any capital gain when you sell your home if it was your principal residence for all the years you owned it and did not use any part of it to earn income.
A property may qualify as your principal residence for any year that you or certain family members lived in it, if none of you designated another property as a principal residence for that year.
Click Here for More details on the CRA website