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Level 1

Capital Gains on Intermittent Rental

Client is living in 2/3 of house and is renting out a separate apartment (1/3 of house).  I assume that she will be subject to capital gains tax on the 1/3 when she sells.  However, she also rents out the 2/3 for 6 months each year when she goes south for the winter.  I see 3 options.  She could file a T2091 every time she moves out and then be subject to capital gains for the 6 months she was away.  She could make an election under 45(2) for the 2/3 every time she moves out.  She could not file anything and assume that the 2/3 continues to be her principal residence even when she is away since she hasn't really moved out to new home.  Any opinions?