Susan Cousins Purchased a House in Oshawa in March, 2018

Susan Cousins purchased a house in Oshawa in March, 2018, for $250,000 (land; $80,000, building; $170,000) . Even though Susan would be unable to reside in the house immediately, she felt it was a very good price and did not want to miss the opportunity to own this house. She rented out the house as of April, 2018. Her tenants will move out in December, 2019, and she will move into her house in January, 2020. The fair market value of the house at January 1, 2020 was $300,000 (land; $130,000, building; $170,000) . The UCC of the house on this date is $163,000. Which of the following is correct?

A) The capital cost of the house for CCA purposes at January 1, 2020 is $275,000.
B) Susan must recognize a capital gain for tax purposes of $50,000 at January 1, 2020.
C) Susan must recognize a capital gain for tax purposes of $25,000 at January 1, 2019.
D) Susan can elect to designate the house as her principal residence for the years 2018 and 2019 so there is no capital gain on the house.
E) None of the above.