home ownership tax question...

so we are trying to sell our condo, which is our primary residence. we will be dropping the price which will eventually lead to a loss. (buying this place has not really worked out and we really want to get out after staying here for more than 3 years)

can i write off the losses from this transaction with my income? in other words, do i get any tax benefit for the losses i will incur on account of the sale of the condo? 

and if i move out into another place, make this an investment property, and sell at a loss... i can probably get the tax benefit???? 

No, you can not deduct the loss from your income.  Because it was your principal residence you will be denied claiming a capital loss.

If you convert to an investment property, the adjusted cost base for determining gain / loss will be the fair market value as of the day you convert it.
It will technically remain a principal residence for taxation purposes until the year end.

Personal residence exemption

Can two spouses each declare their own personal residence for tax purposes when a house is sold? I'm not asking this so that a couple could effectively avoid taxes on the cap gain on two homes but thought that each person could claim their own exemption somehow.

The short answer is no. Have a read of this page from the CRA talking about the principal residence exemption.

http://www.cra-arc.gc.ca/tx/ndvdls/t...ng/mr-eng.html