CRA expands its Folio on principal residences

CRA has revised its Folio on the principal residence, for instance:

  • Noting its discretion under s. 220(3.21)(a) to extend the time for making a principal residence designation
  • Providing a simple example of the application of the transitional rule in s. 40(6.1) to a personal trust that does not come within the narrow category of excluded trusts in (c.1)(iii.1) of the principal residence exemption, i.e., a personal trust whose family beneficiaries occupied the house from the time of the trust’s acquisition of the house must recognize a gain based on the house’s appreciation by $50,000 from December 31, 2016 to the sale of the house in 2017.

Additional Summaries of Folio S1-F3-C2 under s. 220(3.21)(a) and s. 40(6.1).