Homeowner bought home in 2004 - bought a second home in 2016 . First home was kept and he allowed son to live in rent free, never claimed expenses and no rental income. Sold the first home in 2018 . There was no change in use in 2016 so i believe the proper treatment of the sale is to calculate capital gain and apply the principal residence to 13 of the 15 years owned. Is there any reason this would not be a valid option?
2nd case - same scenario but first home was rented , rental statement filed with income and expenses but no CCA and no major renovations expensed. Do the change of use rules apply in this case and is there any scenario in which they wouldnt?
Thanks in advance for all comments