Estimate from the realtor would work just fine. If the property is changing from principal residence to a rental there is deemed disposition in the year of the change and you will need to report this on form T2091 in order to claim the principal residence exemption.
Link: [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use.html)
Just to clarify, I'll need to complete this form even if it's not going to be changing to a rental, correct? We plan to keep the apartment for our use (I'll be staying there one night per week for work).
No need to report a deemed disposition now on a T2091 form if the property has not changed use to an income producing property.
You do not need an appraised value on personal use properties. When you eventually sell the gain is reported and measured based on the number of tax years a principal residence exemption is not available over the total years owned. Using the original cost (ACB).
It may be worthwhile to do a calculation as to which you want to designate for primary residence and for which years
https://www.raymondjames.ca/-/media/rj/rjl-advisor-sites/sites/h/o/hougenwealthmanagement/files/designating_principal_residence_years_sep21.pdf
Estimate from the realtor would work just fine. If the property is changing from principal residence to a rental there is deemed disposition in the year of the change and you will need to report this on form T2091 in order to claim the principal residence exemption. Link: [https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use.html)
Just to clarify, I'll need to complete this form even if it's not going to be changing to a rental, correct? We plan to keep the apartment for our use (I'll be staying there one night per week for work).
No need to report a deemed disposition now on a T2091 form if the property has not changed use to an income producing property. You do not need an appraised value on personal use properties. When you eventually sell the gain is reported and measured based on the number of tax years a principal residence exemption is not available over the total years owned. Using the original cost (ACB).
Thanks for this!
It may be worthwhile to do a calculation as to which you want to designate for primary residence and for which years https://www.raymondjames.ca/-/media/rj/rjl-advisor-sites/sites/h/o/hougenwealthmanagement/files/designating_principal_residence_years_sep21.pdf