How do I declare my principal residence in Canada?

How long do you have to live in a primary residence before renting Canada?

While your election is in effect, you can designate the property as your principal residence for up to 4 years, even if you do not use your property as your principal residence. However, during those years you have to meet all the following conditions: you do not designate any other property as your principal residence.

Can you designate rental property as principal residence?

Changing your rental property to a principal residence

If you make this election, you can designate the property as your principal residence for up to four years before you actually occupy it as your principal residence.

Do I pay capital gains tax if I rent out my house?

Not only is your rental income subject to income tax, which could mean waving goodbye to 20 or 40 per cent depending on which tax bracket you’re in, but you will also become liable for capital gains tax when you eventually sell.

How long do I have to live in my rental property to avoid capital gains in Canada?

As long as you didn’t own a primary residence, for up to 4 years before you moved in. You can defer at least one year of capital gain because you own the rental property for 5 years.

Can you have 2 primary residences in Canada?

Despite only allowing one property to be claimed, the rules allow you to have two residences in the same year: i.e., where one residence is sold and another is purchased in the same year.