Subsection 45(1) - Property with more than one use
Paragraph 45(1)(a)
Cases
C.A.E. Inc. v. Canada, 2013 DTC 5084 [at 5944], 2013 FCA 92
The taxpayer, which leased flight simulators which it had manufactured, subsequently sold those simulators. The Minister denied capital cost...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | characterization of depreciable property or inventory done on annual basis | 371 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | change in use on depreciable property conversion to inventory | 124 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment | 371 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b) | 370 |
Duthie Estate v. The Queen, 95 DTC 5376, [1995] 2 CTC 157 (FCTD)
A change of use for purposes of s. 45(1)(a) from personal-use capital property to real estate inventory occurred in June 1981 at the time the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 87 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | contradictory assessments may be necessary | 99 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs | 51 |
Friesen v. Canada, 95 DTC 5551, [1995] 3 S.C.R. 103
In the context of noting that the Act contemplates two basic types of property (capital property, and inventory), so that real estate held as an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) | loss recognized on decline in value of land held as an adventure | 142 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Inventory | property held in an adventure was inventory | 83 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | undeveloped land held in speculative venture | 142 |
| Tax Topics - Statutory Interpretation - Certainty | clear language and detailed provisions not to be qualified by unexpressed exceptions derived from views as to a provision's purpose | 97 |
| Tax Topics - Statutory Interpretation - Drafting Style | 95 | |
| Tax Topics - Statutory Interpretation - Inserting Words | interpretation should not effectively add words | 104 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | common usage of a technical term given weight | 80 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 97 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Business | s. 10(1) applied to an adventure in the nature of trade even if that deemed business was not “carried on” | 75 |
Derlago v. The Queen, 88 DTC 6290, [1988] 2 CTC 21 (FCTD)
A taxpayer who purchased residential real estate in 1966 with the intention of renting it out until retirement and thereafter using it for his...
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|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | disposition implied proceeds receipt | 168 |
See Also
Latulippe v. Agence du revenu du Québec, 2019 QCCA 2177
In December 2006, the three individual taxpayers acquired, for $392,130 and in equal co-ownership, a rental building with eight apartments towards...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | subdivision of rental property prior to sale of individual units did not detract from capital account treatment | 219 |
Sidhu v. The Queen, 2004 DTC 2540, 2004 TCC 174
The taxpayer, who had used a property as a rental property for nine years and then allegedly used the property as a temporary residence before...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | didn't inform return preparer of gain | 56 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 100 |
Hewlett Packard (Canada) Ltd. v. The Queen, 2003 DTC 1324 (TCC), rev'd 2004 DTC 6498, 2004 FCA 240
In October every year the taxpayer acquired a new fleet of automobiles for use by its employees and transferred possession of the previous year's...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 105 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition | 267 |
Willis v. The Queen, 2003 DTC 1081, 2003 TCC 575 (Informal Procedure)
The taxpayer had acquired seven lots adjacent to their principal residence as a protective greenbelt. Due to a change in their personal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 147 |
Roos v. The Queen, 94 DTC 1094, [1994] 1 CTC 2105 (TCC)
The taxpayers acquired a 39-acres parcel of land in 1980 in order that they could use a portion of it (4 acres as it turned out) in their tree...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | conversion to inventory when fully committed | 73 |
Jones v. MNR, 90 DTC 1849, [1990] 2 CTC 2406 (TCC)
Four acres of land which the taxpayer (Mr. Jones) was using for his personal residence were found to have been converted to inventory at the time...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | no conversion when draft plan of subdivision submitted: at time of rezoning at the earliest | 335 |
Administrative Policy
25 September 2015 External T.I. 2015-0596921E5 - Conversion from inventory to capital
Do the rules in s. 45(1) apply where a home builder, who initially held a property as inventory, commenced to use it for his personal use, having...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | no s. 9 income when house converted to personal use is sold | 130 |
26 November 2013 Annual CTF Roundtable, 2013-0493811C6 - Change in use
Respecting the statements in C.A.E. that the change of use rules apply to the conversion of inventory to depreciable property or vice versa, CRA...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | CAE not followed | 123 |
29 November 2012 External T.I. 2012-0467841E5 - Capital gain versus income
CRA confirmed the position in IT-218R, para. 12 that "vacant land used by its owner for the purpose of gaining or producing income (capital...
9 December 2011 External T.I. 2011-0429321E5 F - Changement d'usage
For the purpose of computing the capital gain from the deemed disposition of a property (e.g., house) from rental to personal use, or vice versa,...
9 December 2011 Internal T.I. 2011-0399641I7 F - Bien agricole admissible et un lotissement
Respecting the qualified farm property status of a farm lot that was used as to 60% by Ms. X's husband in the course of carrying on market...
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| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) - Subparagraph 110.6(1.3)(c)(ii) | 5-year “used principally” test was satisfied where a single lot was used 60% in farming | 163 |
11 June 2010 External T.I. 2010-0354881E5 F - Traitement fiscal de la FNACC
CRA indicated that where the taxpayer ceased to use a class of depreciable property (a Canadian film and video production ("CFVP") included in...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(16) | ceasing to use a class of depreciable property to generate income results in a terminal loss under ss. 45(1)(a) and 20(16) | 158 |
14 March 2003 External T.I. 2003-0002465 F - Usu-droit privé franc.- nu- prop. Canadien
The taxpayer acquired, by will, the bare ownership (under French law) of a French rental property, with the rental income therefrom going to her...
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | rental property of bare owner was not eligible for CCA, as rental income was that of French usufructuary | 60 |
6 February 2002 External T.I. 2001-0100565 F - CHANGEMENT D'USUAGE ET PERTE FINALE
An individual ceased to carry on his personal business and but retained the computer and furniture. CCRA indicated that if he commenced to use...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | change to personal use of assets on cessation of proprietorship could trigger terminal loss/ no application of s. 13(7)(a) if they are not used at all after the cessation | 73 |
21 February 2000 External T.I. 2000-0004915 - FARMLAND-CONV. TO INVENTORY
A farmer owning farmland applies for subdivision, then further develops and sells the lots. At which of these two phases is the land converted to...
29 March 1996 External T.I. 9600785 - FORFEITED DEPOSIT
Taxpayers, who had owned a parcel of land used by them in farming for over 40 years, applied in 1989, for a plan of subdivision, and in 1995, the...
21 February 1994 External T.I. 9335765 F - Conversion From Inventory to Capital
Because the application of s. 45(1) is limited to capital property for purposes of the determination of capital gains and losses in accordance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 34 |
8 July 1992 External T.I. 5-920633
Where a corporation has acquired vacant land as capital property and not for an income-producing purpose and changes the use of the land by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | 33 |
1992 A.P.F.F. Annual Conference, Q. 18 (January - February 1993 Access Letter, p. 57)
A taxpayer who acquires vacant land for one use and, at a later date, starts to use it to generate income, will have s. 45(1)(a)(i) apply at the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | 27 | |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 33 |
19 June 1990 T.I. (November 1990 Access Letter, p. 12, ¶1526)
Where an individual, who had been a full-time farmer, decided to give up farming to work in a different occupation, but retained the farmland and...
IT-102R2 "Conversion of property, other than real property, from or to inventory" 22 July 1985
8. Where capital property is converted to inventory, the action of conversion does not constitute a disposition within the meaning of paragraphs...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 106 |
IT-218R "Profit, Capital Gains and Losses from the Sale of Real Estate, including Farmland and Inherited Land and Conversion of Real Estate from Capital Property to Inventory and Vice Versa" 16 September 19864
10....where real estate is converted from capital property to inventory...for real estate that is used for the purpose of gaining or producing...
Articles
Harris, "Tax Aspects of Condominium Conversions and Lease Inducement Payments to Recipients", 1986 Conference Report, c.45.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 0 | |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 0 |
Subparagraph 45(1)(a)(i)
Administrative Policy
10 October 2024 APFF Financial Strategies & Instruments Roundtable, Q.4
CRA noted that a deemed disposition and reacquisition under the change-of-use rules in s. 45 apply only for purposes of the capital gains rules in...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(13) | a s. 45 change of use does not restart the 365-day period under the flipped property rules | 106 |
10 November 2004 External T.I. 2004-0077831E5 F - Biens à usage personnel
The taxpayer (Mr. X) accumulated over 35 years a collection of objects from an era out of a passion for objects from that era. Over the years, he...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Collectibles | collection of items of personal interest accumulated over 35 years, with some trading, and then auctioned off, likely were capital property | 253 |
| Tax Topics - Income Tax Act - Section 46 - Subsection 46(3) | selling off personal collection one-by-one on auction site did not engage s. 46(3) | 259 |
Subparagraph 45(1)(a)(ii)
See Also
Denis v. Agence du revenu du Québec, 2019 QCCQ 6708
The taxpayer sold a triplex in 2011 at a gain, which he reported as being fully exempt under the Quebec principal residence exemption. The...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | three units in triplex were not integrated and did not form one housing unit | 383 |
Administrative Policy
18 December 2006 External T.I. 2006-0208681E5 - Change in Use
A couple purchased a cottage in 2001, rented it out for four years as requested by the vendor, then in 2005 commenced to use it for personal use. ...
Paragraph 45(1)(b)
Administrative Policy
3 November 2008 Internal T.I. 2008-0285781I7 F - Résidence principale
A residence was acquired partly for business use and party for use as a principal residence by the taxpayers, who claimed a portion of the...
Paragraph 45(1)(c)
Administrative Policy
7 October 2022 APFF Roundtable Q. 10, 2022-0942161C6 F - Règles particulières sur les changements d’usage
An individual owns a chalet that is personally occupied for six months of the year (May to October) and is rented out to others for the remaining...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | where s. 45(2) election is made on change to rental use, no change of use when the property changes back to actual personal use | 178 |
3 February 2017 External T.I. 2015-0589821E5 F - Change of Use of duplex
CRA considerd a real estate property that has not been partitioned to be a single property. Thus, for example, if a duplex containing two...
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.4, 2016-0674831C6 F - Changement d'usage - duplex
An individual acquires a duplex in 2010 consisting of two identical units. The individual occupies the first unit and rents out the second. At the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) | apportionment of operating expenses of duplex used both personally and for rental income | 165 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | duplex is single property | 51 |
S4-F2-C2 - Business Use of Home Expenses
Exception re ancillary use
2.43 ... [I]t is the CRA’s practice not to apply the partial change in use rules and resulting capital gains tax...
S1-F3-C2 - Principal Residence
Application
2.58 The above-mentioned deemed disposition rule applies where the partial change in use of the property is substantial and of a more...
7 October 2016 APFF Roundtable Q. 2, 2016-0652841C6 F - Changement partiel d’usage - immeuble locatif et résidentiel
For the purposes of the s. 45 change-of-use rules, a child’s occupation of a dwelling is considered as personal use if a below-market rent is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) | on sale of triplex, individual can claim exemption only for years in which particular units were used personally or by children | 409 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | triplex contained separate housing units | 151 |
7 August 2014 External T.I. 2014-0528841E5 F - Changement à une résidence principale
A taxpayer renovates the basement of his home by adding a separate door, permitting access from the outside, in order to establish offices there...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | taxable benefit if renovations paid for by tenant-corporation increase the FMV of property to owner-shareholder | 96 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) | Reg. 1102(5) not applicable where door added by tenant to basement rental property | 181 |
30 October 2013 External T.I. 2013-0500831E5 F - Frais de bureau à domicile
A corporation is using an office in its individual shareholder’s home. , “for the shareholder to be able to deduct expenses for the room in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(13) | inapplicable where corporation uses its individual shareholder's office | 71 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | to deduct applicable home expenses, individual shareholder must charge rent to corporation using home office | 44 |
17 April 2013 External T.I. 2013-0475301E5 F - Résidence principale - changement d'usage partiel
After acquiring a two-storey house, work was done in the basement of the house so that it could be rented out. Does this affect the...
21 February 2012 External T.I. 2011-0417471E5 F - Changement d'usage - paragraphe 45(3)
A taxpayer inhabited as a principal residence a unit of a taxpayer-owned duplex and integrates that unit, through major renovations, with the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(3) | s. 45(3) election not available where 2nd unit in taxpayer-owned duplex changed from rental to personal use | 146 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | immovable (including a duplex used 2 different ways) is considered a single property unless subdivided | 87 |
7 January 2004 Internal T.I. 2003-0038217 F - gain en capital / résidence principale
A taxpayer constructed a housing unit for his son and son's spouse on the second floor of his personal residence and incurred small losses in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | rental of second floor of house to son at cost was not a business | 92 |
20 October 2001 External T.I. 2003-0007015 F - RESSOURCE INTERMEDIAIRE
An individual employed by a Quebec public institution received compensation pursuant to the Act respecting health services and social services for...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(h) | amounts received for accommodating disabled individuals in the taxpayer’s home were exempted | 81 |
Subparagraph 45(1)(c)(i)
Administrative Policy
11 September 2017 External T.I. 2017-0706851E5 F - Changement partiel d'usage - Immeuble locatif
Mr. X, who had acquired in 2002 a three-unit rental building (the "Triplex") consisting of three identical units, then became a non-resident...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 216 - Subsection 216(1) | previous s. 216 use of property taken into account, following immigration to Canada, under ss. 13(7)(d)(ii) and 45(1)(c)(i) | 121 |
Subparagraph 45(1)(c)(ii)
Administrative Policy
27 June 2024 External T.I. 2023-1000391E5 - BC Secondary Suite Incentive Program
The BC Secondary Suite Incentive Program assists qualifying homeowners to create a new secondary suite or accessory dwelling unit (a “Secondary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | rental program requiring rent at no more than an affordability limit could correspond with a source of income | 185 |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | forgivable loan could be cost reduction based on well-accepted business principles | 218 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | application of s. 13(7.1) or 53(2)(k), and exclusion of s. 12(1)(x), re BC government forgivable loan for construction of secondary suite | 153 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | s. 45(2) would permit claiming principal residence exemption for disposition of secondary suite rather than balance of home | 396 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | principal residence could be claimed for secondary rental suite subject to s. 45(2) election, or balance of home, but not both | 353 |
Subsection 45(2) - Election where change of use
See Also
Bullard Estate v. The Queen, 2004 DTC 2717, 2004 TCC 249
Campbell J. found that because the deceased taxpayer did not make a s. 45(2) election in a return for 1990, she was prevented from doing so at a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(19) | 90 |
Administrative Policy
27 June 2024 External T.I. 2023-1000391E5 - BC Secondary Suite Incentive Program
The BC Secondary Suite Incentive Program assists qualifying homeowners to create a new secondary suite or accessory dwelling unit (a “Secondary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) | rental program requiring rent at no more than an affordability limit could correspond with a source of income | 185 |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | forgivable loan could be cost reduction based on well-accepted business principles | 218 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | application of s. 13(7.1) or 53(2)(k), and exclusion of s. 12(1)(x), re BC government forgivable loan for construction of secondary suite | 153 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) - Subparagraph 45(1)(c)(ii) | conversion of part of home to a secondary suite for rental would engage s. 45(1)(c)(ii) | 135 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | principal residence could be claimed for secondary rental suite subject to s. 45(2) election, or balance of home, but not both | 353 |
7 October 2022 APFF Roundtable Q. 10, 2022-0942161C6 F - Règles particulières sur les changements d’usage
An individual owns a chalet that is personally occupied for six months of the year (May to October) and is rented out to others for the remaining...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | no change in the regular use under s. 45(1)(c) where a property regularly alternates between personal and rental use | 217 |
9 May 2022 Internal T.I. 2018-0790251I7 - 45(2) election and beneficial ownership
Spouses purchased a home in 2006 which they used as their primary residence until 2015, when they moved out and started renting it out. Although...
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|---|---|---|
| Tax Topics - General Concepts - Ownership | a spouse could be the beneficial owner even though she did not contribute to the property's purchase / owner means beneficial owner | 220 |
11 October 2013 APFF Roundtable, 2013-0495621C6 F - Changement usage - Duplex
Is a duplex or triplex a single property (subject to the land-building allocation) for purposes of ss. 45(2) and (3)? CRA responded...
22 August 2014 External T.I. 2014-0541171E5 - Late 45(2) Election filed by executer
Mr. A rented out his home during his final years in a nursing home. Would CRA accept from his executor a late-filed s. 45(2) election for the home...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.2) | late s. 45(2) election filed by executor | 94 |
25 September 2013 External T.I. 2013-0485751E5 F - Rescinding 45(2) election by a non-resident
If a non-resident holding Canadian real estate rescinds, in a subsequent taxation year, a s. 45(2) election that was made with respect to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(3) | s. 116(3) filing requirement counted from date of deemed disposition under s. 45(2) | 109 |
13 February 2013 Internal T.I. 2012-0448391I7 - Validity of late-filed election and designation
The taxpayer, who sold a duplex to a non-arm's length person, filed his tax return on time without disclosing the disposition, then approximately...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 60 |
16 December 2011 External T.I. 2011-0419211E5 F - Choix à 45(2)
Mr. A’s terminal return made a s. 45(2) election respecting a change in use to rental use earlier that year of the principal residence of him...
8 July 1992 External T.I. 5-920633
A taxpayer will be allowed to elect under s. 45(2) in relation to a capital property even where it is not a depreciable property subject to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | 50 |
1992 A.P.F.F. Annual Conference, Q. 18 (January - February 1993 Access Letter, p. 57)
An election may be made under s. 45(2) in respect of capital property which does not constitute depreciable property to which s. 13(7)(b)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | conversion when commence to generate income | 37 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 33 |
Subsection 45(3) - Election concerning principal residence
Administrative Policy
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 8, 2020-0851641C6 F - Availability of tax information
An individual’s accountant needs to know if the taxpayer has ever claimed CCA on a portion of a rental triplex in order to determine whether a...
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale
After Monsieur acquired a duplex in January 2011, he used the two units for renting to a third party and as his personal residence, respectively....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (c) | reporting of principal residence exemption when the residence had been expanded from 1 to 2 duplex units | 278 |
| Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) | allocation of ACB between units in a duplex | 177 |
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 4, 2016-0651791C6 F - Choix 45(2) et (3) - immeuble à logements
What should an individual do who, a number of years ago, changed the use of a duplex within the potential scope of s. 45(3) election, and is now...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Personal-Use Property | land underlying duplex used 40% personally is not personal-use property | 233 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Regulation 1102(2) | Reg. 1102(2) deems building to be separate from land and does not bifurcate the land | 176 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iii) | capital loss recognition on land underlying duplex used 40% personally | 78 |
13 November 2014 External T.I. 2014-0535611E5 F - Changement d'usage suivi d'un roulement
After an individual made the s. 45(3) election, the principal residence was transferred on a rollover basis under s. 73(1) to the individual's...
25 February 2013 Internal T.I. 2012-0440371I7 F - Changement d'usage - Duplex
The Directorate confirmed the position it took in 2011-0417471E5, which it summarized as follows (TaxInterpretations translation):
[T]here is a...
29 November 2012 External T.I. 2012-0433451E5 - Change in Use - Election under 45(3)
In 2007 the taxpayer and his spouse leave their principal residence for new employment and rent out the residence until 2011 without making the s....
21 February 2012 External T.I. 2011-0417471E5 F - Changement d'usage - paragraphe 45(3)
Can a taxpayer make the s. 45(3) election where the taxpayer inhabited as a principal residence a unit of a taxpayer-owned duplex and integrates...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | s. 45(1)(c) applies where 2nd unit in taxpayer-owned duplex changed from rental to personal use | 150 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | immovable (including a duplex used 2 different ways) is considered a single property unless subdivided | 87 |
18 December 2007 External T.I. 2007-0224761E5 F - Changement d'usage partiel et choix 45(3)
As a result of a condo owned by Mr. X having been included in a rental pool, it was used 80% for renal use and 20% for his personal use. If Mr. X...
30 May 2007 External T.I. 2006-0200271E5 F - Bien agricole et résidence principale
The owner of a farm house purported to make the s. 45(3) election when she moved into a nursing residence. CRA stated:
Subparagraph 45(1)(a)(ii)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(4) | s. 45(3) election did not extend time that farm house was a principal residence, once the occupant went to nursing home | 350 |
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) | principally references over 50% of use | 52 |
Commentary
S. 45(1) on its face only applies where there has been a conversion of the use of a property use from an income-producing purpose (e.g., as a...