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Principal Residence Exemption

Relief from capital gains tax on a family home.

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Relief from capital gains tax on a family home.

In Islamic law

Often the largest single asset in a Muslim Canadian estate, and the one most likely to be held jointly. That takes it outside the estate under Canadian law; whether it also leaves the tarikah is exactly the point contemporary scholars disagree on.

In Canadian law

Shelters the gain on one property per family per year of ownership. On death the exemption can be claimed on the final return.

Across the madhahib

We have not yet researched whether the four Sunni schools differ on this term, so we are not going to tell you either way. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.

Canadian legal detail

Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:

Note

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Citations & sources

Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.

Canadian legislation & government
  1. Principal residence exemption — Canada Revenue Agency
Further reading — Treadstone Law
  1. Principal residence exemption trust — Treadstone Law
  2. Cottage capital gains tax death ontario — Treadstone Law
  3. Multiplying capital gains exemption family trust canada — Treadstone Law
  4. Deceased final tax return estate taxes ontario — Treadstone Law
  5. Wills & estates practice — Treadstone Law