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capital gain - Printable Version

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capital gain - tordus1 - 02-11-2018 04:08 PM

i sold my primary residence back in July and was wondering if i would pay tax on capital gain since the house was rented out for 1.5 year within the last 5 years.


RE: capital gain - taxtips - 05-11-2018 10:32 AM

If only a part of your home qualifies as your principal residence and you used the other part to earn or produce income, you have to split the selling price and the adjusted cost base between the part you used for your principal residence and the part you used for other purposes (for example, rental or business). You can do this by using square metres or the number of rooms, as long as the split is reasonable. See Did you file Form T664? if you filed a capital gains election on the property you disposed of. If you did file Form T664 you may need to complete the T2091(IND)-WS , Principal residence worksheet.

We will consider the entire property to maintain its nature as a principal residence in spite of the fact that you have used it for income producing purposes when all of the following conditions are met:

The income producing use is ancillary to the main use of the property as a residence.
There is no structural change to the property.
No capital cost allowance is claimed on the property.