# Change of primary residence to income producing



## beachman (Apr 28, 2012)

Can anyone help me here?

I wrote up an Election letter to Maintain Principal Residence after Change in Use from Principal Residence to Income Producing – Subsection 45(2). I hired an accountant to write me up a letter. I mailed this back in July 2013 when I left Canada and in return received a form called T2091 to send in with my 2013 tax return. I sent this letter via registered mail and it has been received by CRA.

Upon calling CRA and got transferred to 4 different departments I was told that this form is for people who actually sold their property to calculate capital gains. Apparently I was supposed to sent the above letter informing them of change of use to be attached with my 2013 tax return and not before. The agent suggested to send this letter again with a note I netfiled the return, am I in another country and could not physically attach the election letter.

I still have the copy of the letter and will send it again. Can you tell me what note should I put for CRA. I have rented the property as soon as I left (August 15th 2013) and have already done my taxes and included the income from this rental.


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## domelight (Oct 12, 2012)

beachman said:


> Can anyone help me here?
> 
> I wrote up an Election letter to Maintain Principal Residence after Change in Use from Principal Residence to Income Producing – Subsection 45(2). I hired an accountant to write me up a letter. I mailed this back in July 2013 when I left Canada and in return received a form called T2091 to send in with my 2013 tax return. I sent this letter via registered mail and it has been received by CRA.
> 
> ...



You simply need to refile the election Your note should simply say 

"Please find enclosed my election to exercise my options under section 45(2) of the income tax act. I would request that this election be included as part of my 2013 T1 tax return. I would further request that you forward me a written acknowledgment of your receipt of this election.
Thank you in advance 

P.S. Don't forget that if you ever claim capital cost allowance on your rental report you will automatically nullify the 45(2) election in the first year cca is claimed.


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## beachman (Apr 28, 2012)

Thank you very much for your help.


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