Hi there. Converted my primary home to a rental in 2013. I was delayed and doing my taxes, in 2015 my accountant sent a letter in 45(2) to the CRA when filing my taxes.
I just sold the house in 2024, filed taxes, and CRA is claiming they never received my 45(2) submitted in 2015. My previous accountant is deceased, however, I still have a copy of the t1 and letter he sent to the CRA in 2015.
What is the likelihood they will accept this? Their responses times are incredibly long and as the difference is over $100,000 in owed to taxes, I am filled with anxiety until I receive a response from them. Any thoughts or feedback?
They should, but response times to letters are even longer. If you take it to your current tax preparer, he can probably submit the information on line which will get a faster response. (But still very slow!)
I fax 45(2) and the like. My all-in-one prints the transmission page which always includes a 2/3 picture of page one. The first page is always the document. CRA can not say it was not sent.
What you have should suffice. If the previous accountant was a member of a professional body, they may know of a successor firm that may have the old files. Hope you don’t need to go there.
Depends whether you are trying to convince CRA that the 45(2) was properly filed in 2015 or whether you want them to accept the “late filing” as of now (2026). If you want to prove that the 45(2) was properly filed in 2015, you will need more than your copy of the letter sent by your accountant - you will need the postal or courier receipt (preferably with tracking number) showing the date it was sent. Probably of success? I’d say quite high. If you can prove CRA received the letter, even better.
If you want CRA to accept a “late-filed” 45(2) you will have to write a letter to the Minister of National Revenue (François‑Philippe Champagne) asking him to allow the late filing, then send his response with your 45(2) election letter to CRA. Probability of success? I’d say low, given that it is over 10 years since it should have been filed. However, if you can convince Mr. Champagne that the election is vital to your well-being and that you did everything in your power to verify it had been filed on time, that might do the trick.
I’d have to check my records but think the CRA wasn’t issuing acknowledgement letters for the 45(2) pre-2018. The onus back then was to keep your receipt. Given that was ten years ago, it would be due for the purge in December 2026.
