A second property doubles the tax planning. Start with the one-per-family rule.
Only one property per family can be your principal residence in a given year, so a cottage can turn a tax-free sale into a taxable one. These guides explain the choice and the traps.
This hub explains the rules. Estate planning, family trusts and gifting strategies need personal advice from an accountant or lawyer.
Your reading list
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1Start here 2 min read
Cottage and Second Property Tax in 2 Minutes
The one-property rule, choosing which to designate, and what gifting or inheriting does.
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2Step 2 2 min read
Selling Your Home: Tax in 2 Minutes
How the exemption works, what you must report and the 365-day flipping rule.
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3Step 3 2 min read
Capital Gains Tax in 2 Minutes
How the taxable part of a gain is worked out.
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4Step 4 2 min read
Adjusted Cost Base in 2 Minutes
Keep records of what you paid, since they set the size of your gain.
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5Step 5 Calculator
Capital Gains Tax Calculator
Estimate the tax on the part of the gain that is not exempt.
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6Step 6 2 min read
Rental Property Tax in 2 Minutes
If you rent the cottage out, how rental income and the sale are taxed.
What these guides do not cover
- Estate planning, family trusts and passing a property to children
- Land transfer tax and property tax
- GST/HST on vacation property purchases and sales
This is education, not tax, legal or investment advice. Talk to a licensed Canadian chartered professional accountant or certified financial planner before you act.
Other guides by audience
You own a home. Here is where tax can work for you.
A high income changes the tax maths. Start with your marginal rate.
Rent is income and the sale is a gain. Here is how each is taxed.
Your company and you are taxed separately. Start with how money comes out.
Nobody withholds your tax. Here is what to plan for.