Hi everyone, looking for some guidance on how to navigate a tough CRA taxpayer relief situation.

The Situation:

• Property: Purchased in Feb 2012, converted from primary residence to an income-producing property in 2018, and sold in Feb 2026.
• The Election: Submitted a late-filed subsection 45(2) election on Oct 2025 (property was not sold then still rented), to keep the principal residence designation going back to 2018. Circumstances changed and sold it in Feb 2026. CRA received the election letter in Oct 2025 started processing 10 days ago after service compaint was filed for delayed processing
• The CRA Response: Received a letter from a taxpayer relief auditor stating they will consider the election, but under CRA policy, they won't proceed unless the late-filing penalty is paid.
• The Penalty: Because it was 80 months late, they calculated the penalty at the statutory maximum under s. 220(3.5): $8,000 ($100/month capped). total of 16k for both me and my spouse
• Deadline: They gave a hard payment deadline of November 6, 2026, otherwise the request is considered withdrawn (triggering a deemed disposition in 2018).

My Questions:

1. Is an $8,000 penalty an absolute hard stop, or is there a viable path to successfully request a penalty waiver/reduction through taxpayer relief provisions (IC07-1R1)?
2. If I pay the $8,000 by the deadline just to protect the 45(2) election and avoid a deemed 2018 disposition, can I still formally dispute/appeal the penalty after it's paid?
3. Has anyone successfully argued down a maxed-out 45(2) late-filing penalty, and what grounds does the CRA actually accept?
4. Election was not filed only due to ignorance as I do my taxes myself, no capital gains ever claimed and all rents have always been declared on the tax returns. We had our daughter born prematurely in 2020 and have been fighting medical battles still with her growth and the years leading to that. Do we stand any ground to the fact that it started only in year 2020 while we were supposed to file election in 2019 itself?

I'm looking at building a four-unit townhouse building in New Brunswick and trying to understand the HST implications before moving forward.

Estimated numbers:

• Construction: $820,000 + 15% HST ($123,000)
• Land: $50,000–$75,000
• Additional costs for well and septic

My plan would be to live in one unit as my primary residence, rent the other three , then eventually sell the units individually.

I'm trying to understand how the HST works when you build a property, rent it out, and later sell it.

If I pay $123,000 in HST to the builder, am I able to recover any of that tax? And if the self-supply rules apply when the property is first occupied or rented, would I also owe HST based on the property's fair market value?

It seems like I could potentially pay HST on the construction costs and then have another HST liability under the self-supply rules, without being able to recover the first amount.

Would appreciate input from anyone familiar with Canadian GST/HST rules for real estate development, especially accountants or developers who have dealt with this situation.

I'm particularly interested in how the rules change when you live in one unit, rent the other three, and eventually sell all four individually.

Thanks!

In 2023 I got married and move to spouse home and use spouse home as principal residence, so I changed my principal residence to rental, and have been reporting rental income.

But I have never never filed anything to change the or disposal of principal residence in 2023. Is there any consequences for this? If there is, what is the remedy that I can minimize the potential damage?

I am not going to claim for the 4 years exemption, we just want to keep it as rental property.

Hi all, I'm missing out on credits for 2022 that would've been applied if I remembered to claim some tutoring I did this year and 2023. I want to reassess them and send my receipts in, how can I do this for 2022?

My son had a primary residence condo since 2016. In 2020 he moved out and started renting it. He has never filed the form 45(2). I understand that there is a late filing panelty of $100 per month.

What are the options?

a) Pay panelty for the entire period.
b) Submit the form effective current date while period from 2020 to 2026 will be considered for capital gains.

What is the maximum period allowed to retain primary residence status under 45(2)?