Use this template to prepare a Subsection 45(2) election. When a taxpayer changes the use of his property from a principal residence to a rental property, there is a deemed disposition at that time. However, so long as the taxpayer did not claim CCA in respect of the property and is a resident of Canada, he can continue to treat his rented home as his principal residence for up to four taxation years.
The subsection 45(2) election should be filed with the taxpayer’s personal tax return for the tax year during which the change in use occurred.
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