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?
