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i m residence of montreal. We bought duplex which has basement with 2 kitchen ,upper floor with one kitchen and second floor with one kitchen. All level as separate entrance and also inter connected entrance. we took out all civic number and made one.someone from city came to verify it we also made door from inside to go second floor which is also recoreded in city. we have never claimed any thing in taxes. we are using whole building for family.never rented .In this circumstance if i sell my duplex will i have to pay on capital gain?
If the duplex is made up 2 separate self-contained units, with separate addresses, then you can only claim one of the two units as your primary residence. This means, one unit will be subject to capital gains taxes upon sale.
However, if the duplex is "one unit" with the same address, and you have never rented out any part of the duplex, then you can claim the principal residence exemption for the entire unit, in which case capital gains tax will not apply.