[Verse 1] When you sell your family home, there's a rule you need to know Capital gains can disappear if you play your cards just so Principal residence exemption, it's a powerful CPA tool One plus years of ownership, that's the golden calculation rule [Chorus] One plus years over total years you owned Times the gain, that's the exemption zone PRE protects your family dwelling place Capital gains tax you won't have to face Remember the formula, keep it in mind One plus years will save you every time [Verse 2] Only one home per family unit, spouses have to choose Which property gets the designation, careful not to lose Four years absent, still protected, if you move away Temporary work or study, keeps exemption in play [Chorus] One plus years over total years you owned Times the gain, that's the exemption zone PRE protects your family dwelling place Capital gains tax you won't have to face Remember the formula, keep it in mind One plus years will save you every time [Bridge] Change of use brings complications Business use needs allocations Nineteen ninety-four election Saves your future from inspection Normally inhabited, that's the key Principal residence must be [Verse 3] Half a hectare, that's your limit for the land around More than that gets partial treatment, extra tax is found Death and marriage change the players in this tax game Spousal transfers keep exemption benefits the same [Chorus] One plus years over total years you owned Times the gain, that's the exemption zone PRE protects your family dwelling place Capital gains tax you won't have to face Remember the formula, keep it in mind One plus years will save you every time [Outro] Principal residence exemption Your home's tax protection Calculate it right, sleep well at night PRE is your direction
← Capital Gains & Losses Basics | Specialized Capital Property Rules →