Many Canadians own a vacation property, aka cottage or cabin. And when it comes time to sell that property, as we learned when we sold ours in 2015, there are many things to consider. Not the least of these is the potential tax burden on the sale, which comes in the form of Capital Gain tax if you sold it for more than your capital cost.
It turns out that in fact there are a few options available to help save you tax money, and often the key to this lies in understanding that, while we can only have one principal residence (on which the capital gain is not taxed at time of sale) in cases where we own more than one property we are permitted to designate which property is the principal residence.
Here is an article from MoneySense magazine titled ‘Reducing capital gains on the sale of a cottage’ found here http://www.moneysense.ca/save/taxes/reducing-capital-gains-on-the-sale-of-a-cottage/