Tax on pre-contruction condos?

Question

I'm a Canadian citizen, and I owned a pre-contruction condo for ~2yrs. I do not own any other property.

It was my intent for it to be my principle residence. I went for the house inspection and had my lawyer prepared all the necessary documents. After the inspection, I later realized it was not a place where I want to live in. It was very close to the final date for the ownership transfer (with the developer) and I sold the condos to another person.

My question is if I can treat this as my principle residence and not pay tax on the gain? If not, it this a "capital gain" of which 50% is taxable?

Answer 1

Best place to get this answer is CCRA web site (link attached)
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/reporting-income/lines101-170/127/real-estate/menu-e.html

or if it does not help you contact them at 1-800-959-8281

Answer 2

I am more familiar with US tax law than Canadian. I believe in ANY jurisdiction your principle residence is the place you ACTUALLY live most of the time. I don't see how that could apply to a place you NEVER actually lived.