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Returning Member
posted Apr 26, 2021 3:32:55 PM

What do if complete in Turbotax for a 45(2) election

I am filing a 45(2) election for turning my principal election to a rental in 2020. Are there any forms I need to complete in Turbotax or do I just attach the election to my paper filed return.

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Level 6
Jan 5, 2022 1:25:33 PM

We appreciate you choosing TurboTax,

 

CRA requires you to prepare a paper return with the details of the S.45(2) election you are making (address of the property, date of the change of use, etc. and sign and date this attached S.45(2) document - keep a copy for your records) when you change the use of your property from personal to income-generating.

 

The tax return for the taxation year in which the change occurred must contain the election. If no CC A has been claimed, penalties may apply if a late election is filed.

 

Please visit the links provided for further clarifications:

CRA: Changing all your principal residence to a rental or business property

CRA: Income Tax Folio S1-F3-C2, Principal Residence

 

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