Principal residence exemption on rental property?
If I were to buy a house (my only property), but rent it out, would I still have the PRE?
Technically speaking, and practically speaking, would the CRA find out?
Apr 5th, 2019 10:27 pm
Apr 5th, 2019 10:41 pm
Apr 5th, 2019 11:48 pm
Apr 6th, 2019 5:42 am
Apr 6th, 2019 7:32 am
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Apr 6th, 2019 9:38 am
Apr 6th, 2019 9:40 am
Um, there's a reason its called 'Principle residence exemption', duh.
Apr 6th, 2019 10:14 am
Apr 6th, 2019 11:03 am
Apr 6th, 2019 11:08 am
Thanks, I think this is exactly what I was looking for.mazerbeaner wrote: ↑ I believe you are allowed to do this, there are restrictions though, here are the rules per CRA;
https://www.canada.ca/en/revenue-agency ... perty.html
Apr 6th, 2019 11:12 am
Apr 6th, 2019 11:18 am
Is living in the house short-term necessary? Is it so you can initially designate it as your primary residence?DaveTheDude wrote: ↑ Move into the house short term like a few months. Change all addresses like bank and drivers licence. Then make a tax election S. 45(2) not to be considered as having started to use your principal residence as a rental property. This election would be good for at least four years. You would then be able to claim the property in those four years as your principal residence while it is rented.
Apr 6th, 2019 11:20 am
Apr 6th, 2019 11:21 am
Apr 6th, 2019 11:27 am
Apr 6th, 2019 11:48 am
Yes, living there is necessary in order to qualify as primary residence. You don’t have to live there all the time, but you (your spouse or your children) live there at some point of time during the year.
Apr 6th, 2019 6:02 pm
Lets see, you wouldn't have asked
if you had nothing to hide now would you? Your made your intention insanely clear right off the bat. Doesn't take a rocket scientist to see that.