Ouellette – Court of Quebec finds that the quick (re)building and sale of three successive residences was eligible for the principal residence exemption

A couple (one of them, a carpenter), who successively substantially renovated or built, and sold, three homes, with the sales occurring over a four-year period, realized capital gains eligible for the principal residence exemption on such sales, rather than fully taxable business profits. Lachapelle JCQ accepted that each sale had occurred for personal reasons rather than as build-and-sell adventures in the nature of trade:

• The first residence was sold as a result of the increasing noise and congestion attributable to a nearby quarry and campsite
• They sold the second residence (designed by them) because they determined that it was too small to host family members
• They sold the third residence because they wanted to move closer to the family of one of them in Montreal.

Neal Armstrong. Summary of Ouellette v. Agence du revenu du Québec, 2020 QCCQ 8765 under s. 9 – capital gain v. profit – real estate.