Real Estate

Sell house/condo while in US; still count as principal resident?

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  • Jun 23rd, 2016 6:07 pm
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[OP]
Banned
Jul 23, 2013
108 posts
Toronto

Sell house/condo while in US; still count as principal resident?

Does anyone has experience with selling their house/condo while working in US; can I that still count it as principal resident?

I have a condo that I am currently renting out, I am considering selling it but was wondering whether it can be considered my principal residence while I am out of the country. If needed, I can end the rental agreement first but need to know the out of country part.
3 replies
Deal Fanatic
User avatar
Apr 11, 2008
5754 posts
474 upvotes
Shepple wrote: Does anyone has experience with selling their house/condo while working in US; can I that still count it as principal resident?

I have a condo that I am currently renting out, I am considering selling it but was wondering whether it can be considered my principal residence while I am out of the country. If needed, I can end the rental agreement first but need to know the out of country part.
Have you ever lived in it? Should be the number of years you lived in it + 1.
Sr. Member
May 14, 2013
536 posts
827 upvotes
RFD
Shepple wrote: Does anyone has experience with selling their house/condo while working in US; can I that still count it as principal resident?

I have a condo that I am currently renting out, I am considering selling it but was wondering whether it can be considered my principal residence while I am out of the country. If needed, I can end the rental agreement first but need to know the out of country part.
Well the answer is pretty complex depending on your situation (i.e. if you are still a resident of Canada). If you are, I would refer to:
http://www.taxtips.ca/personaltax/prope ... einuse.htm

In a nutshell, I hope you filed a 45(2) or maybe try to retroactively file one. Otherwise, there's a "change in use" when you started renting it and a deemed disposition. If you sell it now (whether you are in the country or not), it will trigger a capital gain/loss based on the difference between the Fair Market value when you started renting it and it's FMV now.

If the value of the condo has gone down since you started renting it, then no big deal.

If you stop renting it now and move back in, it's still a deemed disposition ("Change in Use") and will result in the same scenario above unless you have that election under 45(2).
[OP]
Banned
Jul 23, 2013
108 posts
Toronto
I may have filed one when I was claiming the HBA credit but I am not 100% sure; I think I will call CRA to see if I have filed one and/or I can fill one for last year. But sounds like my best option is probably just keep it rent out for now and then sell it when I am back in Canada.

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