If you move into the second home full time, no tax will be payable as a result of this move. But, if the use of the property changes from personal use to being used for income purposes, things change.  Because, the CRA will consider this as a rental property. They will deem the change from personal usage to a source of income, that could cause a tax implication.

Principal Residence Redemption and How It Affects Tax

When you sell your primary home, there is no tax applied on the gain. Assuming the family lived in the property the whole time the home had been owned.  The Principal Residence Redemption protects the property against any tax implication.

Tax Protection And The Location Of Your Primary Home

The principle residence does not have to be in Canada. You could purchase a property in the United states and use as a vacation property. You do have the option to designate it as a primary property.  Remember, you are only able to live in the U.S. for 6 months at a time.  If you choose to stay longer, you put your provincial benefits at risk.

When dealing with a tax issue, either personal or corporate, contact our office for a complimentary consultation.