Five tax tips for cottage owners this summer season
Actionable ways to trim your cottage tax bill this season: PRE planning, tracking renovations, and timing dispositions under higher inclusion rates.
Summary of Tim Cestnick — The Globe and Mail (Tax Matters). The Globe and Mail. Read the original.
Summaries are for educational purposes. All rights to original articles remain with the publisher.
What it covers
This column provides timely guidance for cottage owners navigating the 2025 tax year. It explains how the principal residence exemption (PRE) may still apply to a cottage in certain circumstances.
It highlights how changes to the capital gains inclusion rate increase the importance of documentation, and warns that failing to track renovation costs can materially increase your taxable gain when selling.
Cestnick also identifies key moments when timing matters, including when to crystallize gains, when to transfer ownership within a family, and when last-minute improvements must be supported by receipts.
Why it matters
Higher inclusion rates magnify every missing receipt or poor record. The more you treat the cottage like a financial asset, the fewer surprises you face when selling or gifting.
Cottagr takeaway
Log all capital improvements, store receipts, and align family decision-making with PRE and disposition timing to avoid preventable tax liabilities.
Summary of Tim Cestnick — The Globe and Mail (Tax Matters) — The Globe and Mail