Question regarding the capital gain

If you moved to your condo in 2019 you may qualify for 45(3) election and avoid paying capital gains if you meet all the criteria.

https://www.canada.ca/en/revenue-agency ... dence.html

senasena wrote: ↑ If you moved to your condo in 2019 you may qualify for 45(3) election and avoid paying capital gains if you meet all the criteria.

https://www.canada.ca/en/revenue-agency ... dence.html

Can you elaborate a little more on this? CRA link is not totally clear. Does the 45(3) election mean he has to pay no capital gains tax because he moved into his property within 4 years of buying it?

GameChannel wrote: ↑ Can you elaborate a little more on this? CRA link is not totally clear. Does the 45(3) election mean he has to pay no capital gains tax because he moved into his property within 4 years of buying it?

Best to check with the accountant but in the nutshell a person can declare on principal residence at a time, it doesn't mean a person has to reside there at all times, this election can be claimed for the property owned which is rented out and the owner doesn't claim any other property at the same time as a principal residence and must be resident of Canada, can't claim cca on rental, must report rental income. The 4 years can be extended in certain conditions.
Here is another link, it talks about 45(2) election but I believe the same rules apply to 45(3). 45(2) is changing from principal residence to investment, 45(3) is the other way round.

https://www.canada.ca/en/revenue-agency ... perty.html