7 October 2016 APFF Roundtable Q. 3, 2016-0652851C6 F - Annulation d'une promesse d'achat sur une maison -- summary under Paragraph 40(2)(b)

As a result of breach of a puchaser's obligation to purchase a personal residence, the individual vendor received $50,000 in damages from the defaulted purchaser. Is the $50,000 eligible for the principal residence exemption? CRA responded:

[A]s the right under the [contractual] promise is a property distinct from the personal residence, this right could not qualify as a principal residence and paragraph 40(2)(b) would not apply.

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d7 import status
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