Principal residence exemption

Sam Kamoh · ‎March 27, 2021

hi

I have a situation. My client owned a property with her brother in 2019. That was was her principal residence from 2019 until she got married in June 2020. She moved out of the house and living in a rented place with her spouse after marriage. She did not come out of the title yet. She wants to buy a house with spouse sometimes in 2021.

She is not eligible for MTG since she is still in title and may be no mtg obligation since her bro wants to take over the mortgage balance.

My question is - since she moved out in june 2020 and does not live there anymore- do I have to file T2091 as deemed sale -in 2020. Or wait until she buys the property and comes out of title from the PR she had and file in 2021 ? I need help. Thanks

Thanks

Sam Kamoh · ‎March 28, 2021

thx

View solution in original post

MikeACGA · ‎March 27, 2021

Hi Maragatham, I see no reason for a deemed sale. And there appears to be no actual sale either. Once she is removed from title and a sale of her half occurs then the schedule 3 will be completed and she will report the years that she used the house for PR. She might want to get a valuation ASAP of the house as at the time she moved out.

Mike.

Sam Kamoh · ‎March 28, 2021

thx