Chapter 04 · Sale
Canadian Principal Residence Exemption vs. Florida Property
Why the Florida home is never eligible for Canada's principal residence exemption.
Direct answer · 60-second summary
The 60-second version
- Canada exemption applies to Canada residence
- Foreign real property = ineligible
- Florida property = non-Canadian asset
- Canadian principal home: full exemption
- Florida secondary home: taxable gains
- Form T2091 designates Canadian residence
- Cannot combine US + Canada exemptions
- Planning: study sale timing carefully
Acronyms used in this guide
- CRA — Canada Revenue Agency
- Schedule 3 — Schedule 3 (capital gains Canada)
- T2091 — Form T2091 (principal residence)
- PRE — Principal Residence Exemption
- FIRPTA — Foreign Investment in Real Property Tax Act
Exemption = Canada residence only, not foreign
Canada's principal residence exemption (PRE) applies ONLY to Canadian residences. Florida real property, being non-Canadian, can never benefit from PRE.
Form T2091: principal residence declaration
Use Form T2091 to designate principal residence annually (if you own more than one Canadian property). Florida excluded.
Two homes: one main in Canada, one in Florida
Owner of Canadian principal home + Florida secondary property: Florida gains fully taxable (50% inclusion), Canadian gains exempt if designated principal.
Timing before relocation
If US-to-Canada relocation imminent: sell Florida before establishing Canadian residence if possible, as reclassification can complicate taxes.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Disclaimer
This guide is for educational purpose only.
For concrete decisions, consult a licensed attorney.