Change in use of house result in deemed disposition for non residents?

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Sammi
Posts: 3
Joined: Tue Mar 31, 2015 12:36 am

Change in use of house result in deemed disposition for non residents?

Post by Sammi » Mon Jul 13, 2020 2:16 pm

Good morning,

Me and my husband left British Columbia in 2013 and filed a departure return listing our assets including our house. I believe I filed an election to defer any gains (but honestly I can't find my paperwork on this).

We started renting our house in 2019 and paying CRA 25% taxes on a monthly basis. 

We are now preparing our 2019 section 216 tax return and came across the change in use rules. As we have been non residents for all these years, it is unclear if this will be considered a deemed disposition. Is there an election that I can file for my situation with my tax return to ensure we are not assessed for capital gains? 

I am reading the special situation rules for change in use and it says we can make an election to not to be considered as having started to use your principal residence as a rental property." Is that something a non-resident can do?

Thank you kindly,

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Change in use of house result in deemed disposition for non residents?

Post by nelsona » Mon Jul 13, 2020 5:20 pm

As a non-resident, you cannot use the change of rules exemption, so do not worry about it. You simply pay your NR tax monthly and file 216 every year. You will need to know the value of your hose when you left Canada and when you began renting it. You will be responsible for tax on gains from 2013 onwards, regardless if you had rented it or not, but will only need to pay when you sell.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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