# Principle Residence\>Rental\>Sold **URL:** \ **Category:** Tax Topics\ **Created:** [February 22, 2021, 3:36pm UTC](https://www.protaxcommunity.com/t/principle-residence-rental-sold/4187 "2021-02-22T15:36:11Z")\ **Posts on this page:** 1\ **Showing post:** 2
**Author:** ![Nezzer](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/nezzer/32/3845_2.png) [@Nezzer](https://www.protaxcommunity.com/u/Nezzer)\ **Post date:** [February 23, 2021, 4:45am UTC](https://www.protaxcommunity.com/t/principle-residence-rental-sold/4187/2 "2021-02-23T04:45:53Z")
@tome Similar question was asked/answered here: > [@Converting PR to rental property](https://www.protaxcommunity.com/t/converting-pr-to-rental-property/4110): > > An elderly client moves out of his condo in 2020 and moves in with his daughter and son-in-law. The move will likely be permeant. He decided to keep his condo and rent it out. The condo is owned jointly by all three of them - the elderly man, his daughter and son-in-law. I see two options here: Change of use and deemed disposition at fair market value of the condo in 2020. In which case the capital gain will be offset by the man’s PR Exemption. 45(2) Election whereby there would be no chang… To summarize, you have several options: 1. 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. 2. 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). 3. 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). --- _[View the full topic](https://www.protaxcommunity.com/t/principle-residence-rental-sold/4187)._