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Hi Allan, thanks for having a great website resource available. Have a question regarding change in use of principal residence to rental property. Is there a time limit on when to file a change in use subsection 45(2) election. I read somewhere that we can’t file that election after 10 years from when the change in use happened.
Hi, the subsection 45(2) election must be filed with your personal tax return for the tax year during which you changed the use of your property from a principal residence to a rental property. The CRA has said that they will not retroactively accept this election (i.e. if it is filed late) because doing so would be 'retroactive tax planning'.