@tome
Similar question was asked/answered here:
To summarize, you have several options:
- Using FMV (appraisal, etc) as of the date it was first rented (2014?), consider it a “change in use”. Gain from 2011-2014 is covered by the PRE. Gain from 2014-2020 must be reported on S3.
- Try to submit a “late filed” 45(2) election, to extend the PRE for up to 4 years, then report the gain from 2018-2020 (using appraisal, etc from 2018 to determine the capital cost).
- Use the “years-plus-one” formula to calculate the exempt proportion of the gain based on the number of years it was principal residence (no appraisal needed).