Thank you, great video. What if the couple sold their principal residence then moved into their cottage for a year then sell it as their principal residence- no taxes on either sale, is this possible?
They can only use the PRE on one property per year owned. So if they owned both properties for 10 years, sold the house (using their PRE for those 10 years) and then move to the cottage, they would only be able to use the PRE on the cottage for 1 year out of the 11 total years owned, sheltering 1/11th of the gain. They can use the plus 1 rule to their advantage which will make a small difference but broadly speaking there is no way to “double up” the PRE on the cottage using the strategy you outline. Thanks for the question!
