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Returning Member
posted Apr 10, 2021 6:14:40 PM

How to report change of use principal residence

I didn’t find any info on turbo tax premier 

about change of use principal residence to rental property 

 

it only ask for did you dispose  your property 

 

how do I report it and what other documents I needed 

 

thanks 

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1 Replies
Level 6
Jan 5, 2022 8:27:46 AM

There is no need to report the change of use. If you operate a business from your home or rent out part (or all) of your residence, you’re changing the use of your property from residential to income-earning. Because the PR exemption applies only to the time your home was just your residence (and earned no income), you may be subject to capital gains rules when you sell

 

When you’re a landlord, it’s important to keep good records. Not only will you want to keep records of the rent you receive (income), you’ll also want to claim any expenses you incur (deductions) on your rental property. Landlords, along with self-employed individuals, are more likely to be audited than salaried employees, according to the CRA. It’s important to have all your receipts for expenses, otherwise your tax deductions could be disallowed and you could face costly penalties and interest.

More information is available on the following links:

Tips for Renting out Your House

 Changing all your principal residence to a rental or business property

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