11 September 2017 External T.I. 2017-0706851E5 F - Changement partiel d'usage - Immeuble locatif -- summary under Subsection 216(1)

Shortly after immigrating to Canada, a non-resident individual, who had been renting out the three identical units in a Canadian triplex and reporting the net rental income (after CCA deductions) based on a s. 216 election, moved into one of the three units in the triplex for use as his principal residence. CRA treated this as a partial change of use (i.e., the triplex was one property, not three), so that recapture of depreciation and taxable capital gain could be realized on a proportionate (1/3) basis pursuant to ss. 13(7)(d)(ii) and 45(1)(c)(i). Thus, the property’s use by him as a s. 216 filer and then by him as a resident was integrated for purposes of applying those rules.