TaxCycle | Products | Pricing | Training | Documentation | Support | News

Principal Residence used 42% for B&B & 3% residential rental

Taxpayers occupy just 28% or this large home. 42% B&B and 30% rental suite. They have claimed CCA in the past. Would they get any portion of the principal residence exemption if there is a change of use to all personal use in the year they sell it (2020), or does the CCA claim in the previous 3 years negate that entirely?

Therein is your problem… The claim causes “issues.”

See Income Tax Folio S1-F3-C2 Principal Residence, Paragraphs 2.61 through 2.64. Particularly the latter paragraph. A particularly well written reference for your question.

Thank you Tim, that is exactly what I needed.

Gay