«You have one principal residence exemption for tax purposes that you can use either for your cottage or your home,» explains Deb MacPherson, a partner at KPMG Enterprise. (moneysense.ca)
Under the new reporting system, expect to see an increase in principal residence exemption denials by the CRA. (moneysense.ca)
This would mean that even though you were technically separated, you were still married in the eyes of the CRA for purposes of the tax - free principal residence exemption that can only apply to one property for a family unit for any given year. (moneysense.ca)