11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation -- summary under Principal Residence

A tenant had been annually renewing a lease of a personal-use condo since the time the condo was first leased in July 2013. The condo was sold in February 2019. In order to be able to move in right away, the new owner paid $15,000 to the tenant for early termination of the lease. CRA considered it likely that the tenant continued to have a (single) residential leasehold interest throughout the period since July 2013, so that the $15,000 qualified for the principal residence exemption, i.e., it was consideration for the disposition of the leasehold interest (used as a principal residence) that the tenant had acquired in 2013 and held since then to the time of the lease termination.