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Converting rental back into primary residence

ggrover

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Mar 5, 2009
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I was wondering if anyone could help me with the following as its really hard to find the exact answer to the question as many people have varying different opinions.

I have a property in Vancouver which used to be my primary residence between 2007 - 2012. After losing my job in Vancouver I got an offer for a job in Ottawa. So my family and I relocated to Ottawa. We rented out our house in Vancouver. From 04/2012 - 02/2014 we rented a house in Ottawa then decided to purchase a house. After many years of being away, we are looking to move back to Vancouver and back into our original property sometime next year. Having looked at possible tax implications regarding moving back into my own property I'm really confused regarding the tax laws around capital gains, primary residence exception (PRE), deferring recognition of the resulting capital gain, etc. Therefore I was wondering if anyone is able to provide me with some guidance as what to do?

Has anyone converted their rental back to primary residence?
 

Thomas Beyer

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Aug 30, 2007
Messages
13,881
Only the times when a property is a personal residential property is it exempt from capital gains taxes.

At all other times a gain is taxable once sold.

Just keep a record of these dates and justification of value at these points in time to show gains or losses later, at time of sale when you have to file a T2091 form with CRA. Aim for high values when start rental periods and low ones when you end them, for example appraisals, comps or realtor opinions.

Gather receipts for revenue and expenses too for the T2091 form. https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t2091ind/t2091ind-18e.pdf

Thomas Beyer
Asset Manager, Investor, Author, Father, Mentor www.prestprop.com

==> Check out our latest RRSP or TFSA eligible two year investment with a 40%+ yield target at www.investoliver.ca
 
Last edited:

Sherilynn

Real Estate Maven
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Oct 22, 2007
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2,803
I would absolutely get a professional appraisal to establish value when you convert it.
 
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