Client moved to a care home, family sold his principal res, then client died. Is the home still considered a principal residence or is care home the principal res?

The principal residence was sold at a loss, so there is no capital gain, I am wondering if there is a way to claim a capital loss.  There doesn't seem to be a way on the T1255 on first glance.  Any information would be appreciated.  This is my first go round with principal residences upon a death.

Answer

He's eligible to designate the principal residence exemption for any year that he actually lived in the home, even if it was only for a few weeks. Plus you get one bonus year. So if he lived in the house for 19 years and in the care home for 1 year, he could use the exemption for ALL years because of the bonus year (19 plus 1). If he lived in the care home for 3 years, he could only use the exemption for 18 years (17 plus 1).

However, none of this really matters if there was a loss. A loss can never be claimed on a personal use property such as a principal residence.  

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