Two principal residences

Woman purchased principal residence in 2013 for $100k - Sold early 2024 for $264K
Man purchased a principal residence in 2019 for $375k - Sold Oct 2023 for $595k
Purchased a different home together - Nov 2023

Other facts:
-Common law Oct 2021 & Married April 2022
-Woman’s house rented part of 2021 and most of 2022 to tenants. In 2023 she was unable to secure tenants and decided to use entire home for her business.

My thoughts:
One principal residence per family - common-law couple

Woman’s property
-Change in use 2021.
-PRE 2013-2020
Capital gain = Sale price less FMV at time of change in use in 2021

Man’s property
-principal residence for all years owned (he was there 2019-2020, then wife moved in 2021 and lived there till 2023 then bought new home together).

Does anyone see it differently?

@healthymanccc

Consider principal residence election in your scenarios.

CRA - Changing all your principal residence to a rental or business property

CRA - Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust)

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