As a Canadian citizen we are only allowed to own 1 principal residence and receive the principal residence tax exemption (Capital Gains tax free) when selling. In this blog I’m going to give you an example of where I’m seeing wealthy oversees buyers purchasing multiple properties and designating them as principal residences in family members names to avoid the capital gains tax when they sell. In my opinion, a principal residence purchase should be tied into Revenue Canada and that each purchaser should be required to file a Canadian tax return to prove that the funds were earned by the person on title. This simple solution would at least level the playing field for all buyers and generate billions of dollars into the general tax coffers that are being avoided right now.