Do you have to report sale of your principal residence if you don't live there the whole time you owned it?
1/ Yes, you have to report sale on your tax return.
2/ You have to calculate the PRE (Principal Residence Exemption) and taxable capital gain.
3/ PRE = (# of years used as Principal Residence + 1) x Total Capital Gain
Total # of yr You Owned Your Principal Residence
The extra 1 year in the equation means the year of moving, which will be counted as principal residence.
4/ Taxable Capital Gain = Total Capital Gain minus PRE
1/ Yes, you have to report sale on your tax return.
2/ You have to calculate the PRE (Principal Residence Exemption) and taxable capital gain.
3/ PRE = (# of years used as Principal Residence + 1) x Total Capital Gain
Total # of yr You Owned Your Principal Residence
The extra 1 year in the equation means the year of moving, which will be counted as principal residence.
4/ Taxable Capital Gain = Total Capital Gain minus PRE
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