my question is if I do claim mortgage interests for my basement rental, would I be charged partial capital gain when I sell my principle home?
You are usually considered to have changed the use of part of your principal residence when you start to use that part for rental or business purposes.
However, you are not considered to have changed its use if:
If you meet all of the above conditions, the whole property may qualify as your principal residence, even though you are using part of it for rental or business purposes.
Base your claim of expenses based on the occupied square footage of the rental unit compared to the total square footage of the building.
You are usually considered to have changed the use of part of your principal residence when you start to use that part for rental or business purposes.
However, you are not considered to have changed its use if:
If you meet all of the above conditions, the whole property may qualify as your principal residence, even though you are using part of it for rental or business purposes.
Base your claim of expenses based on the occupied square footage of the rental unit compared to the total square footage of the building.
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