(Toronto/Ontario) Selling property as principal residence proof

[Jan Walczak]

Hi everyone,

I'm considering selling one of my properties next year but would like to sell as principal residence to avoid capital gains tax. What documentation/proof do I need to provide CRA as means of proof? 

Ex.

- drivers license

- bills (gas/hydro)

Of course I would have to move in to this property as well. Could I still have a lease and tenants living with me?

[Theresa Harris]

@Jan Walczak  It sounds like you haven't been living in this property.  If you move into it for a year and used it as a rental for 9 years (picking random numbers), when you file your taxes you state this on the form and will pay capital gains on the 90% of the profit (it doesn't work out to 90% as there are some other steps, but you get the idea).  it is based on calendar years, so if you moved in from Dec-June, that would count as 2 years (2019 and 2020).  Call CRA with the scenario and they will explain it.