Dear taxman A similar question but a little different. My Mom has lived in the same home since 1938. She is now age 91, dad passed away in 1996. She broke a leg in 2003 and subsequently found herself placed in a home and hospital. She is now considered a maximum care patient and pays about 2500 per month. (I know this is deductible.) My question is how long a period can she designate her home to be her principal residence? She is planning to go home and if she were asked today that is what she would say. It is doubtful from a medical point of view as she has mild dementia and some altziemers. Thanks in advance. M xxxxxxxxxxxx ------------------------------------ david ingram replies: Mom can rent out the house for four yeas plus one. The one is to look after the fact that you might start in a July and end in a June after four years which covers parts of five years. Read Form T2091 and the instructions to see the rules. You cannot depreciate the building under these circumstances. When you file the rental statement for it, put a section 45(2) election statement with the T776. The 45(2) election statement should read: I hereby elect under Section 45(2) to designate the house at _________ __________ ___________ to be my principal residence even though I am not inhabiting it at present. I f you are not renting the house out and she is "in the hospital", there should not be any limitation, it is still her house. However, if she is not going back, rent it. Hope this helps and remember that this is a good question for the radio program: Answers to this and other similar questions can be obtained free on Air every Sunday morning. 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