Hello! I am a bit confused by the information on the CRA website about changes in use of principal residence:
n my case , I am changing my principal residence to a rental property. I konw that I need to determine the fair market value (through real state agent's report or an appraisal) but I am not sure If I have to report it in my tax return for the next yer. If so, how would I report it? I would appreciate any advice you wise ones can share :). Thank you in advance!
Hi, thank you for using Intuit turbotax Live Community
Canada Revenue Agency(CRA) discusses the disposition/ change of use as a capital transaction to be reported on schedule 3 of a T1 at this link:
This would require completing form T2091 in the year of the change; the T2091 is mentioned in the link above.
Review the elections available to see if they apply to your situation . There is information at this link:
Hope this helps
Hi I was reading to your answer
my situation is like that
I bought new house in 2017 and moved to it in July and in same year I changed my principal residence (which I bought in 2011 where I used )to live to rental property
I didn’t report anything and didn’t fill any extra forms but I keep reporting rental income on turbotax software since July 2017
it’s unclear as I didn’t sold any property
what should I do in my case as I do taxes with turbo tax