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Capital Gains - Quebec election 284


mrq2
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Capital gains - Personal use property

My niece (lives in Quebec) made an election 45(2) federally or for Quebec election 284 last year-2020. She sold in 2021.

Do I say yes to “Change in use of property and election under section 284 or 286.1” this year 2021?

 

History:

  • 2012 to 2020 Principal Residence
  • 2020 change of use to income producing. Made election 284 Quebec and 45(2) federally
  • 2021 sold
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If you never claimed the CCA, and respected the other conditions of section 45(2), you just need to complete the sale of a principle residence section. You can designate the property as a principle residence for all the years the property was owned or if you prefer to 2020. Given the ‘+1 rule’, there should be no capital gains and you can attribute year 2021 to the future sale of a principle residence. Through the Ufile dialogue section, the first page only of form T2091 should be completed and form TP274 section 4.1 Net Capital Gain box 70 should be 0. You sold the property in 2021, so there was no change of use.

 

 

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Thank you for the knowledgeable reply. Never claimed CCA. When I designate the sale as a principle residence at the bottom of the page it asks Change in use of property and election under section 284 or 286.1". Since this election was done for the 2020 tax year, what should I answer for the 2021 tax year (now that it's sold) - Yes, No, or leave blank??

If YES, do I put the "from" to 2020 (election made) and the "to" to 2021 (sold)??

 

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  • 2 months later...

I have the same issue, however when I put "Yes" to the question “Change in use of property and election under section 284 or 286.1” this year 2021?", it will not allow me to file electronically. Any advice?

 

 

blank.gifYou cannot currently NetFile the Quebec return. Please review the following reasons, and make corrections when possible. If an (*) appears at the end of an explanation below, it denotes a NETFILE exclusion (i.e. the return cannot be transmitted).

The taxpayer is requesting an election (for example under section 284 or 286.1 [TP-274] or under subsection 45(2) or 45(3) [ITA]) within their income tax return. *

 

 

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