Can you use 'change in use from principal residence to rental property' election under SS 45 (2) for a property bought as a first time home buyer?
Can you apply 'change in use from principal residence to rental property' election under SS 45(2) in the same year in which you bought the property as a first time home buyer (using land transfer tax exemption, tax credit, etc)? otherwords, you buy a property with the intent to live in as first time homebuyer and then immediately after acquiring it notify CRA that you are changing its use to a rental property and want to use the election to be able to claim it as principal residence for up to 4 years at time of disposition? note: i realize the letter needs to be sent to cra with tax return. my client plans on reporting all rental income, just wants to know if he can use this election right after he buys as a first time home buyer. thanks.