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jaimeald
New Member

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.

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?
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TurboTaxTatsiana1
New Member

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.

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.

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