Quote:
Originally Posted by ssjGoku69
There is a tax election 45(2) or 45(3) that the taxpayer/homeowner can submit to the CRA to retain that principal residence of the property in this exact situation. Talk to your tax guy though
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Yup, I used this tax election when I moved to Victoria for work for 5.5 years. Was able to avoid capital gains on the entire 5 years that I rented out my apartment. It's really easy to do - it was just a basic letter that I sent in saying that I moved due to work and therefore was renting out my place (presumably if they audited they would have wanted more proof like a letter from my employer).
In my particular case I had moved back into the place when I returned then sold it later and by moving back in I could file the letter after the fact. If you don't move back in then you have to file it beforehand.
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Current: 2019 Acura RDX
Gone: 2007 Acura TSX, 2008 Mazda 3 GT, 2003 Mazda Miata LS, 2008 Mazda Miata GT PRHT, 2003 Mazda Protege 5
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