Personal Finance

uFile for Windows - Section 45(2) Election

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  • Apr 19th, 2016 3:54 pm
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[OP]
Sr. Member
Feb 21, 2010
879 posts
253 upvotes
Scarborough

uFile for Windows - Section 45(2) Election

Hi
I have two questions:

1) Does any one know how to make election for 45(2) Principal Residence Exemption for Change in Use from Personal-use to Income-producing in uFile for Windows?

I rented out my principal residence and moved to a new home in 2015. I wish to rent my original home for few years before deciding on
a) To sell my new home and move back to original
b) to sell original home and make my new home as principal residence.

I read that I have 4 + 1 = 5 years to keep my original home as principal residence in order to save on capital gains if I elect to sell my original home down the road.

2) Is my understanding correct?

RC
4 replies
Newbie
Jul 14, 2008
39 posts
22 upvotes
I doubt you can do this in any tax software. Usually, you'd just write an letter to CRA stating the election you'd like to make. Just include your SIN and address of the residence you are making the election on.
Deal Addict
User avatar
Mar 31, 2009
1196 posts
811 upvotes
Anyone know if the 45(2) election has to be made every year that it is in effect? Or is it considered in effect until CRA is otherwise informed, once it's in effect? Ie. election was made at the time of filing 2014 taxes. Does the election again have to be filed with 2015 taxes? Curious because this is an issue that doesn't usually come up too much.
[OP]
Sr. Member
Feb 21, 2010
879 posts
253 upvotes
Scarborough
Nutpot wrote: I doubt you can do this in any tax software. Usually, you'd just write an letter to CRA stating the election you'd like to make. Just include your SIN and address of the residence you are making the election on.
thanks for the reply. I called CRA few times, could not get to speak to anyone in Capital Gains department. Their line is always busy. I have left my number for a call back. I will let you know what the agent advises me when he calls me.

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