How to report change in use of principal residence...

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Qutrit
New Member

How to report change in use of principal residence?

Hello! I am a bit confused by the information on the CRA website about changes in use of principal residence:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

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!

2 Replies
TurboTax-Duncan
Level 6

How to report change in use of principal residence?

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:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

This would require completing form T2091 in the year of the change; the T2091 is mentioned in the link above.

Also

Review the elections available to see if they apply to your situation . There is information at this link:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

-capital-gains/principal-residence-other-re

al-estate/changes-use/changing-your-rental-business-property-a-principal-residence.html

 

Hope this helps

 

 

hbedi29
Returning Member

How to report change in use of principal residence?

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  

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