Why this taxpayer had to pay taxes on what he thought was the sale of his principal residence

One of the most lucrative tax breaks for some Canadians is the tax-free gain on the sale of their principal residence. The principal residence exemption (PRE) provides homeowners with a complete exemption from tax on the entire capital gain realized when you sell a home designated as your principal residence. Four criteria must be satisfied under the Income Tax Act in order for a property to qualify as your principal...