u/Familiar_Influence91

Converted my home to a principal residence to rental in 2022. I never claimed CCA. In 2025, I moved back in, changing it to my principal residence. I plan to live here for 10+ years.

Can someone confirm my understanding of the CRA rules?

1. Current Taxes (2025): I do not report a deemed disposition or capital gains. I only report partial-year rental income/expenses on Form T776.
2. The Election: I do not file the 45(3) election letter now. I only file it with my tax return the year I actually sell the property.
3. Future Sale: Filing the 45(3) upon sale defers the 2025 deemed disposition. It also grants me the Principal Residence Exemption for the years I live in it, plus up to 4 of the rental years (assuming I didn't designate another PR).

Is this 100% correct? Am I missing any traps by not reporting the change of use now?