Principal Residence Exemption as Non-Resident

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tigerjk
Posts: 12
Joined: Mon Mar 07, 2016 3:51 pm

Principal Residence Exemption as Non-Resident

Post by tigerjk »

I've done some reading on the CRA site with regards to owning a Canadian property as a non-resident. Then I ran into something called "electing into subsection 45(2)" which, if I'm understanding it correctly, allows you to not change the property from a principal residence to an income-producing one for a max of 4 years.

This would be invaluable if I were to sell my property as I can reduce my tax on the gain by using the principal residence exemption (PRE).

However, it also says that I must be a "resident or deemed-resident' during the 4 years in order to fully utilize the PRE.

Since I'm filing my departure return on the 2015 return, I will be a non-resident moving forward.

I guess my question is, what is the benefit (if any) for a non-resident to elect into subsection 45(2)? I don't think it changes my remittance obligations with my rental income, so I'm curious on what it really achieves.
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nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

4592) doesn't apply when leaving Canada. Your PRE ends in one year after departure.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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