I acquired my primary residence in January 2020, and turned in into a rental property on March 15th 2020 because the world was ending due to COVID.
I still own the property and it is still a rental.
I never applied CCA and have paid taxes on the income property. I never filed a 45(2).
The net profit from the sale today would be ~$50k ($7.5k in capital gains tax).
Should I file a late 45(2), I understand that it might be a 48 month penalty at $100/mo
Anyone go through this before? Thanks in advance.
You can. Whether you’ll be successful in making the argument that it was established as your PR in … two months … is another matter. Given that further, it has never been used as your PR since then either, that may be a more difficult position to establish than it might otherwise be.
I’m OK with bending on things, but I don’t think I’d be onside with counselling that personally and would need some pretty strong evidence that it WAS actually used as your PR for that period, and you’re not just making things up to avoid paying tax.
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Thank you for your take on the matter SmallBizGuy.
This is what I get for doing my own taxes.
I actually acquired another property in September 2020 and actually lived in it until April 2022 at which point it turned into a rental and it continues to be one. I will have to late file a 45(2) for the 2022 tax year for this second property which is actually my primary residence.