In 2008, Francine purchased a cottage in the country for $110,000. During the entire period she...

 

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In 2008, Francine purchased a cottage in the country for $110,000. During the entire period she has owned the property, Francine has spent three weeks at the cottage during the summer and approximately one weekend each month the rest of the year. Following her marriage a few years ago, Francine, who is 67 years old, felt it was an opportune time to downsize her main home. Accordingly, she sold the house she owned in the city and moved into the apartment rented by her new husband. She claimed her house as her principal residence from 2011 to 2016 (inclusive). Unfortunately, in 2020, Francine had a marital breakdown and she was forced to sell her cottage. receiving proceeds of $595,000. How much of her capital gain on the cottage can she exempt from taxation? In 2008, Francine purchased a cottage in the country for $110,000. During the entire period she has owned the property, Francine has spent three weeks at the cottage during the summer and approximately one weekend each month the rest of the year. Following her marriage a few years ago, Francine, who is 67 years old, felt it was an opportune time to downsize her main home. Accordingly, she sold the house she owned in the city and moved into the apartment rented by her new husband. She claimed her house as her principal residence from 2011 to 2016 (inclusive). Unfortunately, in 2020, Francine had a marital breakdown and she was forced to sell her cottage. receiving proceeds of $595,000. How much of her capital gain on the cottage can she exempt from taxation?

Answer rating: 100% (QA)

Answer To calculate the amount of capital gain eligible for the principal residence exemption we need to consider the periods of residence and nonresi... View the full answer