What should an individual do who, a number of years ago, changed the use of a duplex within the potential scope of s. 45(3) election, and is now confronted by the new policy in 2011-0417471E5? CRA responded:
2011-0417471E5 dated February 21, 2012…[indicates] that a building is normally considered to be a single property for the purposes of subsection 45(1)… . Thus, a change of use of a duplex unit is generally a partial change of use within the meaning of paragraph 45(1)(c) and therefore, such a change cannot be the subject of an election under subsection 45(3).
The CRA therefore no longer accepts an election under subsection 45(3) for a change of use referred to in the position taken on February 21, 2012 where this change occurred after that date.
However, the CRA continues to accept an election made under subsection 45(3) after February 21, 2012 for a change of use referred to in the position taken February 21, 2012 where this change of use has been made on or before February 21, 2012 and where it also qualified for this election prior to this position being taken.