45(2) form

zeusnmn

I converted my principal residence starting Oct 2018 to a rental property when I moved to my current principal residence. I never knew about the form 45(2) so never filled it till date. I have always reported all rents to CRA starting 2018 and I thought that would have been enough but obviously was a mistake

I know I have to pay $8000 penalty for late filing if I were to file the form 45(2) today
I am actually thinking to not file now and file ultimately when I decide to sell the property few years down the line and pay the penalty then considering when I will sell I will have cash at hand, is this the right approach?

TurboTaxAniqua

When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it. The following are some sample situations:

You change all or part of your principal residence to a rental or business operation
You change your rental or business operation to a principal residence

As per CRA you have to report Changes in use of your property.

We won't suggest you not to file as all changes are required to be reported to CRA. We would suggest to seek an advice from a Tax advisor or an Accountant or you can call CRA directly.

Thank you for choosing TurboTax.

45(2) form

After you file