Primary residence (with basement suite) is now a rental. Not sure how to claim the change as the property was not originally purchased by the current owners.

jaimeald · ‎October 30, 2019

Really confused about this having to "sell" the principal residence for tax purposes.. How do we repurchase it on Turbotax? Really confused how this isn't an error.. it's a income property and we sold in the same year.. won't that be a disaster in 2018 taxes when we continue to make income from it?

TurboTaxTatsiana1 · ‎October 30, 2019

Based on the information you provided you have changed the use of the home from Principal residence ( personal use) to rental in 2017.

1. Disposition: Report deemed disposition (sale and immediate re-acquisition of property for different use) at FMV on the principal residence form. If property qualifies as Principal residence for all years owned there will be no taxable gain. If not Gain will be calculated on form T2091.

2. Acquisition: When completing your rental statement T776 add acquired rental property as class 1 asset at same FMV as cost base that is reported on T2091 for disposition.

Primary residence (with basement suite) is now a rental. Not sure how to claim the change as the property was not originally purchased by the current owners.

Investors and rental owners