[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-303555-105":53,"doc-detail-303555-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","converting-your-principal-residence-into-a-rental-property-or-vice-versa-march-2026","Converting Your Principal Residence Into a Rental Property (Or Vice Versa) - March 2026","","Explains Canadian income tax “change in use” rules when a principal residence is converted to a rental property, or a rental property is changed into a principal residence. Covers deemed dispositions at fair market value, reporting of capital gains on Schedule 3, and required filings such as CRA Form T2091. Details special elections to defer or avoid reporting, limits on CCA and designation periods up to 4 years, and partial-change conditions.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/converting-your-principal-residence-into-a-rental-property-or-vice-versa-march-2026/303555/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/converting-your-principal-residence-into-a-rental-property-or-vice-versa-march-2026/303555.png","ImageObject",442,249,{"name":88,"@type":89},"Melati","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-25","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What triggers “change in use” tax treatment for principal residences and rentals?","Question",{"text":108,"@type":109},"Tax rules treat each change in use as a deemed sale at fair market value followed by an immediate reacquisition. This generally requires reporting capital gain (or loss) in the tax year the change occurs.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How do you report converting a principal residence to a rental property?",{"text":113,"@type":109},"When the property was your principal residence before the change, you generally report the sale and designate the residence on Schedule 3 to be eligible for the PRE. Completing CRA Form T2091 (IND) is also required.",{"name":115,"@type":106,"acceptedAnswer":116},"What elections can delay reporting when you convert between principal residence and rental use?",{"text":117,"@type":109},"A special election may allow you to avoid reporting the gain in the year of conversion when changing a principal residence to a rental property, but it prevents claiming CCA and requires annual reporting of net rental income. Similarly, converting a rental to a principal residence can allow postponing disposition reporting until you actually sell, provided no CCA was claimed.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},303555,1790307714,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":76,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9},962085570644,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","Converting your principal residence into a rental property (or viceversa)?  \nMarch 2026  \nJamie Golombek  \nManaging Director, Tax and Estate Planning, CIBC Private Wealth  \nThe \"change in use\" rules that apply to principal residences and may affect your principal residence exemption (PRE) are often little-understood. Here’s a quick review of the rules.  \nUnder the Income Tax Act, you can be considered to have sold all (or part) of your principal residence eventhough you didn’t actually sell it. This can occur, for example, if you convert all or part (such as the basement) of your principal residence to a rental property or conversely, decide to move into a property that you formerly rented out.  \nThe tax rules state that each time you change the use of a property, you’re considered to have sold the property at its fair market value and to have immediately reacquired the property for the same amount, which becomes your new tax cost or adjusted cost base. As a result, the general rule is that upon such a change inuse, you’re required to report the resulting capital gain (or, in some cases, capital loss) in the tax year this change of use occurs.  \nChanging your principal residence to a rental property  \nIf the property was your principal residence prior to the change of use, you don’t have to pay tax on any accrued gain. In the past, it was the CRA’s administrative policy that when you disposed of your principal residence, you didn’t have to report the sale on your tax return if you were eligible for the full PRE. Since 2016, you must report the sale and designation of principal residence on Schedule 3, Capital Gains of your return tobe eligible for the PRE. On Schedule 3, you’ll need to report basic information such as the date of acquisition of the residence, a description of the property and the proceeds of disposition. Completion of CRA Form T2091 (IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust) is also be required.  \nThe good news is, however, that when you change your principal residence to a rental property, you may be able to make a special tax election to not be considered as having started to use your principal residence as rental property and thus, you can avoid reporting this gain in the year of the change in use.  \nIf you make this election, however, you can’t claim any tax depreciation—known as capital cost allowance (CCA)—on the property and you still need to report the net rental income you earn each year.  \nWhile your election is in effect, you can designate the property as your principal residence for up to 4 years, even if you don’t use your property as your principal residence; however, you can only do this if you don’t designate any other property, such as a vacation home or cottage, as your principal residence during this period of time.  \nIf you make this election and then move back into your residence, there are no immediate tax consequences asa result of moving back.  \nChanging your rental property to a principal residence  \nWhat if you decide to move into a home that you previously rented to a tenant? When you change your rental property to a principal residence, you can also elect to postpone reporting the disposition of your property until you actually sell it. This election can only be made, however, if you haven’t claimed any CCA on the property. If you make this election, you can designate the property as your principal residence for up to 4 years before you actually occupy it as your principal residence.  \nFortunately, this election need only be made by the filing due date of the return for the year in which you actually sell the property.  \nChanging part of your principal residence to a rental property  \nFinally, what if you decide to convert only part of your principal residence into a rental property? While technically the change of use rule above applies, the CRA will consider you to haven’t changed its use if your rental use of the prope","cbCainotACeKSk1Z","https://ap.wps.com/l/cbCainotACeKSk1Z","pdf",326706,"English","## Change in use and deemed sale rules\n## Converting a principal residence to a rental property\n## Changing a rental property to a principal residence\n## Converting part of a principal residence to a rental property","[{\"question\":\"What triggers “change in use” tax treatment for principal residences and rentals?\",\"answer\":\"Tax rules treat each change in use as a deemed sale at fair market value followed by an immediate reacquisition. This generally requires reporting capital gain (or loss) in the tax year the change occurs.\"},{\"question\":\"How do you report converting a principal residence to a rental property?\",\"answer\":\"When the property was your principal residence before the change, you generally report the sale and designate the residence on Schedule 3 to be eligible for the PRE. Completing CRA Form T2091 (IND) is also required.\"},{\"question\":\"What elections can delay reporting when you convert between principal residence and rental use?\",\"answer\":\"A special election may allow you to avoid reporting the gain in the year of conversion when changing a principal residence to a rental property, but it prevents claiming CCA and requires annual reporting of net rental income. Similarly, converting a rental to a principal residence can allow postponing disposition reporting until you actually sell, provided no CCA was claimed.\"}]","Converting Your Principal Residence Into a Rental Property (Or Vice Versa) - March 2026 | PDF",1789805095]