Change in Use: What Happens When a Rental Unit Becomes Your Home — Even Partially

Описание: Many Canadian homeowners rent out part of their home at some point.
Later, life changes and that rental unit becomes part of the family home.
This shift feels straightforward, yet the tax impact can be significant.

In this video, I walk through a real Tax Court of Canada case involving a Montreal duplex. The homeowner lived in one unit and rented the other. Years later, he stopped renting, renovated the property, and used the entire home as his principal residence. Even though the property was not sold, the CRA assessed capital gains tax because of a change in use.

The Tax Court reviewed the facts, the timing, and the purpose of the law. The judge focused on how the property was actually used and clarified that a partial change in use can still allow a tax deferral when the right steps are taken. This decision provides helpful guidance for homeowners with duplexes, basement suites, and mixed-use properties.

This video is helpful if you:

Own a duplex or home with a rental unit

Plan to convert rental space back to personal use

Want clarity on capital gains and cash-flow timing

Prefer real court decisions explained in simple terms

Real case link (publicly available):
https://decision.tcc-cci.gc.ca/tcc-cc...

At Cloudiverse CPAs Inc, we help property owners and business owners understand tax consequences before changes are made. Our goal is to provide clear direction so decisions are made with confidence, not guesswork.

Disclaimer:
This video is for general educational purposes only. It does not provide tax, legal, or financial advice. Tax outcomes depend on individual facts and circumstances. Please consult a qualified professional before making decisions.

If you own a rental property or mixed-use home and want clarity before making changes, get in touch with us.

Email: [email protected]

Phone: 604-200-4027