Erm, I'm pretty sure when you do a change of use you get a deemed disposition at FMV and this would trigger the re-capture of any claimed capital cost allowance. So any amount you depreciate would be re-captured into income at the time you moved back in and made it your primary residence, and then 50% the delta between the adjusted cost base and fair market value would be included in your income as a capital gain. Then your ACB gets re-set to fair market value as of that day.
So I believe what you're describing is wrong. Moving back into your property is basically treated, for tax purposes, like selling it... except you don't get the cash to pay the attendant tax.
__________________
"The great promise of the Internet was that more information would automatically yield better decisions. The great disappointment is that more information actually yields more possibilities to confirm what you already believed anyway." - Brian Eno
|