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If you don’t buy another real property to live in and rent after leaving your current home, yes. By way of a Subsection 45(2) Election Form, you can claim the rental property as your principal residence and avoid paying capital gains on it for four years after you left that residence.
If you buy another property and live in it while claiming your former principal residence (which has subsequently turned into a rental property), capital gain tax will apply on your new home.
[This answer was added on 19 Feb., 2018, revised on 19 Feb., 2018.]
[This page was added on 6 April 2009, last revised on 19 Feb. 2018.]