I am trying to figure out the Capital Gain taxes on a property in Toronto. I am very new to this, so sorry if I say something weird.
I live in a condo, which I own, and I am thinking of renting it.
I have lived here for the past three years, and it is the only property that I own(it was fully transferred to me as a gift), so it is my principle residence at this moment.
From what I understand, If I were to sell this property now, I will not have to pay any capital income taxes, as principle residence is not taxed. source 1
Also, from what I understand, as soon as I begin renting the condo, it will loose its status as a principle residency, and I will have to pay 1/2 of the price increase in each year that it is a rental property.
However, here, I see that it is possible to still keep its status of principle residency for up to 4 years, thus not paying any capital gains for those 4 years, as long as one is a resident of Canada and they do not deem their other property as their principal residency.
Now, I am not a permanent resident or a citizen, I am a student, on a student visa and a study permit. Will I be able to keep the property's status of principle residence, thus not owing any capital gain taxes upon selling it, if I go back to living in this property in 4 years?
Note: I am likely to receive a permanent resident status during those 4 years through a common law partner sponsorship. Will this somehow affect the taxes?
Also: I will be living in my girlfriend's apartment in those 4 years, and I do not own any parts of it.
Thank you for your help! Sorry for a terribly long post, first time posting on StackExchange.