"Relatively Small" definition in Change of Use from PR to rental

[joe.justjoe1]

See the references in these recent threads also

.

Rental Property - Change of use

ITA Section 45 (Also S40, S54, and S54.1) (Also clause 2.54 of S1-F3-C2, depending if a S45(3) election is in force))

Rental income - T776

@tim1 Sorry, I stand by my post above. Care should be taken. See ITA S45(1)(b) (Strictly: ANY part used for some other purpose) Administratively, CRA are slightly more generous than that (See T4037 (etc)) “However, you are not considered to have changed its use if all of the following conditions apply: (1) your **rental or business use of the property is relatively small in relation to its use as your principal residence (2)… etc” …“If only a part of your home qualifies as your principa…