Principal Residence
At the end of 2020, Mr. Pippinpaddleopsicopolis sold both his city house and his summer cottgae. Every year he has spent at least a portion o the year living in each of the two locatons. When he is not residing in these properties they are left vacant. Relevant information on the two properties is as follows:
			City House	Cottage
Year acquired			2004	2004
Cost			264,000.00	36,000.00
Gross proceeds from sale			528,000.00	330,000.00
Real estate commissions			32,000.00	16,000.00
Mr. Pippinpaddleopsicopolis wishes to continue to minimize any capital gains resulting from the sale of the 2 properties.
		Before applying Principal Residence Exemption, what would the Capital Gain be on the City Home?
		Before applying Principal Residence Exemption, what would the Capital Gain be on the Cottage?
		For the City Home, which years should it be designated as principal residence?
		For the Cottage, which years should it be designated as principal residence?
		After applying PRE, what is the least amount of taxable capital gain Mr. Vaughan would report on his tax return from this scenario?