- Your principal residence is generally exempt from capital gains tax, but you still report the sale on your tax return.
- Homes sold within 365 days of buying can be taxed as business income under the anti-flipping rule, with some life-event exceptions.
- Rentals, suites, home businesses and second properties can change the answer. Ask an accountant.
This is the question that comes up at almost every listing appointment. Here's the general picture. I'm a REALTOR®, not a tax professional, so please confirm your situation with an accountant.
The principal residence exemption
If the home was your principal residence for every year you owned it, the gain is generally tax-free. Each family unit (you, a spouse or partner, and minor children) can designate only one principal residence per year.
You still have to report it
Since 2016, the CRA requires you to report the sale of your principal residence and the designation on your tax return for the year you sell (on Schedule 3, and Form T2091 in some cases). Missing it can lead to penalties or the exemption being denied. Tell your accountant or tax software about the sale.
The anti-flipping rule
If you sell a home you've owned for less than 365 days, any profit is generally treated as business income, fully taxable, and the principal residence exemption doesn't apply. There are exceptions for certain life events, such as a death, a new job, a separation, the birth of a child, disability or illness, and some others.
When it gets more complicated
- A rental suite or rented rooms: usually fine if it's small and you haven't made structural changes or claimed depreciation, but ask.
- A cabin, cottage or second home: only one property can be designated each year. Choosing which saves the most tax is an accountant's job.
- A home you rented out for a while: the change in use has its own rules.
- Non-residents: if you've left Canada, the buyer's lawyer may need to hold back funds until the CRA issues a clearance certificate. Start early.
Records worth keeping
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You've lived in your Winnipeg home for eight years and sell it. What's generally true?
You bought a home 10 months ago and sell it with no life-event exception. How is the profit usually treated?
Planning a sale and want the full picture?
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Questions people ask
Is GST charged when I sell my house?
Generally not on a resale home you've lived in. New or substantially renovated homes can be different.
Does Manitoba have its own tax on home sales?
Not on a typical resale principal residence. The buyer pays land transfer tax on registration.
This article is general information for Manitoba, not legal, tax, mortgage or financial advice. Rules, rates and programs change; figures are estimates as of October 2026. Check your situation with a lawyer, lender or accountant before you act. Adela Strycharz is a REALTOR® with Real Broker Manitoba Ltd. If you already have an agreement with another brokerage, please speak with your own REALTOR® first.