45(2) Election Change in Use

Allan Madan, CA
 Aug 25, 2017
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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.

Attention:

The following material is for training purposes only. It is only intended for the internal use of Madan Chartered Accountant and is not accessible to the public. Thank you.

 

Disclaimer

The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

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Comments 4

  1. Is moving back into the house for which the Section 45(2) election made a requirement? One person is saying the election can even be longer when the move back is immediate after employment ends. What is the password for the template word.doc file above?

    1. Hi David, you don’t have to move back into the house to use a 45(2) election. Yes, you can extend another 4 years of principal residence exemption if you move back in on the 9th year and file both elections – 45(2) and 45(3). Please note that this template is for internal use only.

  2. I noticed you have a template for Election change in use. I tried to download it but its requesting a password. Is it possible to get a password. I’m trying to help my daughter who is putting massive hours as a Peds Emerg Doctor with very little income.

    please email to srstys@gmail if you would extend me the password. Thx in advance

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