PRINCIPAL RESIDENCE EXEMPTION (PRE) SEPARATION

In a March 19, 2015 Tax Court of Canada case (Estate of Helen Bouldin Balanko vs. H.M.Q., 2014-3116(IT)I), at issue was whether the taxpayer could claim the PRE on the disposition of her property even though her husband from whom she was separated (as alleged by the Estate, and testified by the son) had already claimed the PRE for the same period.

Taxpayer loses
The Court found that a Written Separation Agreement is required by the Act for this taxpayer to be eligible to claim the PRE. As no Written Separation Agreement was found and presented to the Court, the Appeal was dismissed.

For further information see VTN Monthly Tax Update Seminar, Issue No. 405