Filing section 45(2) question
I am looking to do the following and wondering if there is any tax benefit associated with section 45(2) - or any other options.
It's a bit of an odd situation I think, so bear with me..
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I bought a condo in February 2018 and immediately began renting it out
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Everything went peachy until I got tenants in 2021 that began not paying rent from May 2023 to September 18, 2025 until I finally got them evicted (this is another story, but basically this costed me all in about $100k when factoring in legal fees etc.)
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Once I got them out, I designated the unit as my primary residence starting Sep 18, 2025, and began living in it until I very soon after, on December 15, 2025, purchased a house and then moved into this property as my new primary residence.
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On Feb 1, 2026 I found new tenants and they have now moved in (I know... I didn't learn my lesson right - but they do seem good so far and no issues yet)
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Now for my question: when filing my taxes for 2025 is there any way to utilize the benefits of section 45(2) to get a break on the first 4 years of capital gains going forward? Since I had it listed as my primary in Sep 2025, then back to a rental once I bought my new property in December 2025, are there any tax advantages I can leverage?
Really asking as I got hurt pretty bad financially from the non paying tenants and I'm looking for any opportunities within the system I can use to my benefit. I may be grasping, but figured I'd ask for anyone on here who took the time to read through this and who may have a whole lot more experience/knowledge than myself.
Appreciate any opinions! Thanks
Posted Mar 6, 2026, 4:17 AM UTC