I have vacated my principal residence permanently (to a new principal residence!)and intend renting it out. I understand that there may be a capital gain liability due to a change of use ruling? What is the change of use ruling?
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david ingram replies:
The change of use is in reverse. If you move INTO a rental property, you trigger an immediate capital gain as the question following reveals. Note, that if you do NOT claim depreceiation or CCA, you can move back into the old house and not have to pay the tax until actual sale.
