Hi there, We bought and have been living in our current condo for about 8 yrs now. Our family is growing and we're planning on maybe moving out but that's undecided as we really love the city, it's convenience and don't really want to sell our condo but continue to live in it. We thought of perhaps renting a home away from the city for a few years just to see how it would feel, and rent out our principal residence (condo) in the interim. Maybe return back to the condo in a few years if things don't go as planned. Or if things do work out, then sell the condo after renting it out for a few years.
How is this going to work out? Can we appraise the property at its current market value and then rent it out? So that when we sell it in the future, we can sell it at below market value (if need be but above appraised value) so that the capital gains are less? In short, we don't want to forfeit the capital gains exemption on a principal residence if we sell it in the future. What are our options? Any advice or direction would be much appreciated.
The CRA actually has an election that would be applicable to your situation. Information may be found here:
The CRA actually has an election that would be applicable to your situation. Information may be found here: