Renovating Your Property (House or Residential Complex)
You may also be entitled to a tax credit if you had work done to upgrade the residential waste water treatment system of an eligible dwelling.
You may have to report capital gains in your income tax return if, after renovations, you convert:
- your principal residence into property used to earn rental or business income;
- property used to earn income into your principal residence.
Both cases are considered a change in use and generally constitute a deemed disposition (deemed sale).
For more information, see Change in Use of a Principal Residence or Income-Producing Property.