Ms. Snow owns a city home in Hope, BC as well as a chalet in a local ski area. The city home was purchased in 2013 at a cost of $188,000. The chalet was purchased in 2006 for $89,000. On July 1, 2020, the house is sold for $220,000 and the chalet is sold for $142,000. She has spent some time in each property in every year from 2013 through 2020.

Ms. Snow would like your advice on how to apply the Principal Residence Exemption in order to minimize the tax consequences on sales of these properties.

1. Which capital gain should she eliminate first using the Principal Residence Exemption - the city home or the chalet?
2. How many years (if any) should she designate the city home as her principal residence?
3. How many years (if any) should she designate the chalet as her principal residence?