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Change in Use Tax Estimator

In Canada, converting your primary residence into a rental property (or vice versa) triggers a "deemed disposition" at Fair Market Value (FMV). This can create a surprise tax bill. Use this tool to estimate your exposure and see how Section 45(2) and 45(3) elections can help defer taxes.

Property Details & Timeline

Usually equals total years owned if converting from primary to rental.

Tax Profile

Used to estimate the tax on the taxable portion of the gain.

Deemed Disposition Summary

Total Capital Gain (FMV - Cost): $0.00
Principal Residence Exemption (PRE): -$0.00
*Using the CRA "1 + years designated / total years" rule.
Taxable Capital Gain Before Inclusion: $0.00
Inclusion Amount (50% / 66.67% rules): $0.00
Estimated Income Tax Due: $0.00

Defer this tax with an Election

By filing a letter with your tax return, you can elect to defer this deemed disposition until you actually sell the property.

This estimator is for educational purposes only. It is not tax, legal, or financial advice and does not replace guidance from a qualified tax professional or the Canada Revenue Agency. Rules (including the principal residence exemption, inclusion rates, and Section 45 elections) can change and may depend on your full situation.

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