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Change of Principle Residence to a Rental Property


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Hello, I have recently purchased a new property and have converted my previous principle residence to a rental property.  I know that even though I did not sell the property, it is considered a "deemed sale" as I have changed the use of the previous property.  The residence was my principle residence for the entire time that I owned it.  I was made aware that I need to declare this on my 2023 taxes.  Where do I do this?  Is it simply under the "Selling of Property" section, but I just state it was my principle residence. Do I basically fill out that section the same way if I was to sell the property.

Thanks for your help in advance. 

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Hello Coneflower,

Rental - Changing all your principal residence to a rental or business property - subsection 45(2 
When you change your principal residence to an income producing property, such as a rental or business property, you can make an election not to be considered as having started to use your principal residence as a rental or business property. This means you do not have to report any capital gain when you change its use. If you make this election:   //  To make this election, attach a letter signed by you to your income tax and benefit return of the year in which the change of use occurs. Describe the property and state that you want subsection 45(2) of the Income Tax Act to apply.  
If a Quebec tax return is also being filed, a copy of the election should be sent to Revenu Quebec.

// 
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/changes-use/changing-your-principal-residence-a-rental-business-property.html
 

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