An individual owns a chalet that is personally occupied for six months of the year (May to October) and is rented out to others for the remaining six months of the year. CRA essentially appeared to indicate that there would be no deemed dispositions every six months at FMV each time there was such a (temporary) change in use since, for purposes of s. 45(1)(c), there was no change in the use regularly made of the property.
Based on this apparent conclusion, it would be unnecessary for the individual to make a s. 45(2) election to deem the property not to have a change of use to an income-producing use each November when it commenced to be leased. However, CRA indicated that if there were such a change of use and the election was made, there would be no further deemed disposition at FMV when the chalet commenced again to be used for personal use in May, as the s. 45(2) election effectively deemed it to have been used for personal use prior to this change.