Is it paying to rent his condo?
Your condo is for sale but you have not found the buyer and you are thinking about the rent because you have decided to move in with your friend…
You should know that as a homeowner, knowing that the condo is the only property that you own, you are entitled to the exemption of capital gains on the sale of your principal residence. However if you decide to rent the final seasonally or year, you may well lose this exemption.
The rule of the change of use of the property may apply because you start to rent your condo but a choice can be made not to be considered deemed to have started using your condo as a rental property.
While your election is in effect, you can designate the property as your principal residence for a period up to four years, even if you do not use your property as your principal residence. However, you can only do if you do not designate another property as a principal residence during that period.
In addition, it will also declare your rental income during this period.
In conclusion, it is important to plan your decisions because they can have a financial impact far greater than just money entered as rental give you.