It is not uncommon for a person, when moving out of a principal residence, to retain that property as a rental unit. If no election is made, this change in use will be treated as a deemed disposition, possibly resulting in capital gains being assessed. Explain how this result can be avoided, as well as the tax consequences of making the required election.

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The Answer of It is not uncommon for a person, when moving out of a principal residence, to retain that property as a rental unit. If no election is made, this change in use will be treated as a deemed disposition, possibly resulting in capital gains being assessed. Explain how this result can be avoided, as well as the tax consequences of making the required election.

It Is Not Uncommon for a Person, When Moving Out