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Principal Residence Exemption

Relief from capital gains tax on a family home.

Draft — pending review. This page has been prepared but has not yet been reviewed by a Canadian estates lawyer or a qualified scholar. Treat it as a starting point for questions, not as advice you should act on.

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 — which takes it outside the shares entirely.

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

No significant difference between the four Sunni schools is recorded on this point in the sources reviewed. 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:

Important

This entry is general information, not legal or religious advice. Inheritance turns on the exact family circumstances. Confirm Canadian law with a lawyer in your province, and any religious ruling with a qualified scholar.

Citations & sources

Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.

Canadian legislation & government
  1. Principal residence exemption — Canada Revenue Agency
  2. What to do when someone has died — Canada Revenue Agency
  3. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Canadian legal commentary
  1. Stock options death estate tax canada — Treadstone Law
  2. T1243 form deemed disposition emigration — Treadstone Law
  3. Wsib clearance certificate ontario business purchase — Treadstone Law
  4. Adding co owner triggers partial deemed disposition ontario — Treadstone Law
  5. Deemed disposition private company shares death canada — Treadstone Law
  6. Wills & estates practice — Treadstone Law