Coneflower Posted March 29 Report Share Posted March 29 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. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 29 Report Share Posted March 29 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 Quote Link to comment Share on other sites More sharing options...
Saltoback Posted April 29 Report Share Posted April 29 Switching your old pad to a rental sounds like a smart move. Tax stuff can be a bit confusing, but usually, you'd report it under the "Change in Use of Property" section. It's kinda like filling out the same form but with a different twist. I remember when I went through a similar situation a while back. It felt like navigating a maze at first, but once I got the hang of it, it wasn't too bad. Just make sure to keep all your documents in order, and you should be good to go! And hey, if you're into eco-villas, check out this link: https://sandytimes.ae/articles/205/the-new-era-of-real-estate-stunning-eco-villas. I've been eyeing some dubai real estate companies – thinking of making moves to the UAE myself. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 29 Report Share Posted April 29 Hello Saltoback, The above subsection 45(2) is if you are not selling the property. Quote Link to comment Share on other sites More sharing options...
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