Hello,
Have a couple that owned a home together then separated two years ago. They sold the house and filled out the Schedule 3 for the sale of their principal residence. Then each purchased another home. In 2021 the reconciled, sold their homes and bought a new house together. Can they claim the principal residence sale again?
Thank you
The PRE can be claimed multiple times, just not for the same years. There is a +1 rule for the number of years so allow for years when you move (i.e. you sold in 2021 and bought a new house in 2021, you had two legit PRs in 2021). So yes they can. Illustration below:
2010 - Married couple buy house
2016 - Married couple separate and sell house, claiming PRE for 2010-2016. They individually buy their own houses.
2021 - They rectify their difference and get back together, sell their respective homes and buy a new one together in Q4. They would each claim PRE on the homes purchased in 2016 separately from claiming PRE from 2016 to 2021.
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Thank you!