Selling a cottage or vacation home in Canada comes with unique factors compared to selling a primary residence. A cottage is typically a secondary property located in rural, lakeside, or forested areas, serving as a seasonal retreat. Whether referred to as a cottage, cabin, summer house, or simply a vacation home, selling these properties involves careful planning and consideration.
For informational purposes only. Always consult with an attorney, tax, or financial advisor before proceeding with any real estate transaction.
What to Know Before Selling a Cottage
- Cottages are considered investment properties, subjecting profits from sales to capital gains tax.
- Properties purchased before 1994 may qualify for a $100,000 lifetime capital