Thanks. I was reading subsection 2.48 of https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-1-individuals/folio-3-family-unit-issues/income-tax-folio-s1-f3-c2-principal-residence.html

It talks about defering the tax but I'm not sure: "The taxpayer may instead, however, defer recognition of any gain to a later year by electing under subsection 45(2) to be deemed not to have made the change in use of the property."

What makes it a principal residence? Should I have physically moved in? I'll be renting it probably a month after closing. so it is my principal residence before it was rented, right?