45(2) Election Change in Use

Allan Madan, CA
 Aug 25, 2017

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.


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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