New Tax Credits for the Year 2014 Watch Video
Allan Madan, CPA, CA
It’s that time of year again for filing your Canadian Personal Tax Return. Read More…
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ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Hi,
Just a question regarding renting part of my home. I like to rent out the basement and another room to two different tenants. It will be about 30% of my overall living space. If this is my principal residence, will I have to pay capital gains when I sell my house one day and if am not claiming any CCA on the house.
2) If I want to stop renting in 2 or 3 years should my kids decide to move in back, is there a problem with CRA?
Thank you
Hi Mala,
That’s a very good question. When you have rented out the property, you have been deemed to have disposed that portion of the property. So upon the sale, while you are able to claim the principal residence exemption on the personal portion of the property, you will incur a capital gain on the rental portion.
When you convert the property back from a rental property, you will need to inform the CRA about the change in use of the property. There should be no other problems.