A taxpayer purchased a yacht in 2008 at a cost of $24,000. In 2011, the taxpayer changed the use and rented the yacht for the next two years. The fair market value at the time the property became an income-producing asset was $30,000. During 2013, he converted the yacht back to exclusive personal use. The fair market value at this time was $33,000. In 2016, the taxpayer sold the yacht for $60,000.

REQUIRED

Compare the taxable capital gain arising with and without the election to be deemed not to have changed the use.