Principal residence exemption rules in Canada

Question

I live in Canada. I bought a house in 2010 and have been renting it to date, and
have been claiming the rental income on my tax returns along with the allowable expenses.
I am thinking of selling my house in 2022. Since I have been living with my parents to date, I am asking, can I claim the rental property once sold as my principal residence and avoid capital gain taxes? Thanks..

Kim Gold · Answer

You might try but probably you will get caught easily.
Try to answer two questions:

what was your address, registered with CRA, for the last 10 years?
any of your tenants reported the tenancy on they tax return anytime during last 10 years?

CRA has the answers and they will validate / decline your claim automatically, no human intervention required.

Principal residence exemption rules in Canada

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