Selling · Relocation and jobs · 2026
A departure date, a house to settle: selling fast does not mean selling badly, and renting it out is not always the easy option. Here is the choice, the tax rules that apply in 2026, and the realistic timeline.
A transfer or a new job in another city forces a quick decision between selling and renting out your house. Selling remains the default choice: the resale of a principal residence is not taxed, and if you bought it less than a year ago, the 365-day flipping rule (which taxes the profit as business income) provides an exception for a work relocation of at least 40 km closer to the new workplace, as for death, separation, serious illness or job loss. Moving expenses (transport, storage, the costs of selling the old house including the commission, the notary fees of the new purchase, up to 15 days of meals and temporary lodging) are deductible federally and in Quebec if the new home brings you at least 40 km closer to the new workplace, up to the income earned at the new job. Renting out and keeping suits you if you come back within two or three years, if the rent covers the mortgage, taxes and maintenance, and if you accept losing the principal residence exemption for the rental years (the tax election lets you keep it for up to four years without living there, provided you designate no other residence). The 60 to 90 day timeline: valuation and listing within the week, price at the market of closed sales (no "negotiating margin"), photos and listing sheet ready before the ad, offer in 2 to 4 weeks, deed 30 to 45 days later, and a mortgage ported to the new purchase if the date allows.
| Criterion | Sell | Rent out and keep |
|---|---|---|
| Horizon | Permanent or uncertain departure | Likely return within 2 to 4 years |
| Tax | Nothing on the principal residence; exception to the 365-day rule for a relocation of at least 40 km | Rental income taxable; designation election (up to 4 years) to keep the exemption; gain in value during the rental taxable without the election |
| Cash flow | Capital freed for the new purchase's down payment; mortgage penalty avoided if the mortgage is ported | The rent must cover mortgage, taxes, non-occupant owner insurance (pricier), maintenance and vacancy; a second purchase requires qualifying with both loans |
| Management | No management | Remote: tenant screening, repairs, the TAL; a manager costs 6% to 10% of the rent |
| Costs | Commission, notary, certificate; deductible as moving expenses if the relocation qualifies | Leasing costs, insurance, vacancy; selling costs deferred |
365-day rule: the resale of a dwelling held less than 365 days is taxed as business income (100% of the profit, no principal residence exemption), except for a listed life event: death, addition of a person to the household, separation for at least 90 days, threat to safety, serious illness or disability, change of workplace or business at least 40 km away, involuntary termination of employment, insolvency, expropriation or destruction. Moving expenses: deductible if the new home is at least 40 km closer to the new place of work or study; they include transport and storage, travel costs, up to 15 days of meals and temporary lodging, lease cancellation, the costs of selling the old residence (commission, notary, advertising, mortgage penalty) and up to $5,000 of costs to maintain the old residence while unsold (interest, taxes, insurance, heating), as well as the notary fees and welcome tax of the new purchase if the old house is sold; the amount is deductible up to the income from the new job, the excess carried to the following year. Relocation package: an employer can reimburse expenses tax-free if reasonable; an allowance for a loss on the sale is tax-free up to $15,000 and half taxable above.
Week 1: valuation on closed sales, certificate of location checked, pre-inspection if the house is over 25 years old, photos, listing sheet; price at market, not above "to negotiate": in a market where days on market are lengthening, an overpriced house loses the first weeks, the strongest. Weeks 2 to 5: grouped showings, offer with short conditions (financing 7 days, inspection 7 days). Weeks 6 to 12: notary; deed date aligned with possession of the new home, with a temporary occupancy clause or a few weeks of storage if needed. The mortgage is ported to the new purchase within the lender's window (often 90 to 120 days) to avoid the penalty; if the new employer is in another province, the lender must operate there. If the house is not sold at departure, it sells remotely: electronic signature, a broker who handles showings and keys, price revised after 21 days without an offer.
Not if the relocation brings you at least 40 km closer to the new workplace: it is an exception to the 365-day rule, and the principal residence exemption applies.
Yes, as a cost of selling the old residence, within moving expenses, if the new home is at least 40 km closer to the new job.
If the return is likely within 2 to 4 years, the rent covers everything and you make the designation election to keep the exemption; otherwise, sell.
60 to 90 days from listing to deed at market price; the sale can close remotely if the departure comes first.
The numbers of the sale: the cost of selling, the mortgage penalty and the commission calculator.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.