The benefits are easily determined based on the sale price and any sales cost, but ACB can spend more work. You start with acquisition costs, including settlement costs, and add any renovations over the years. However, for those who immigrate to Canada, the calculation is a little different.
Capital gains when moving to Canada
When you move to Canada, your deferred capital gains on assets such as real estate and stocks are ignored for Canadian tax purposes. What happens after the Canadian Revenue Agency (CRA) is taxable only if the growth occurs.
Immigration in Canada is considered for sale and immediately re-employ their capital assets upon the date of entry into Canada. (Most tax pensions are excluded.) Based on the exchange rate at the time, that value will be converted to Canadian dollars. For conversion, the CRA recommends using the exchange rate of the Bank of Canada, but it also accepts some other verifiable sources.
For rental properties, the value of moving to Canada becomes the cost basis for your capital gains tax purposes here.
Earn, Savings and Expenditures in Canada: A Guide to New Immigration
Fair market value of property for tax purposes
Taxpayers do not need to use professional valuation Carl. You can use your own estimate or real estate agent’s valuation. However, a CRA can challenge your valuation, and your responsibility will prove that your valuation is accurate.
When you file a tax return, you must “prove that the information given in this return and any accompanying documents are correct, fully and fully disclosed all of my income.” As a result, it is recommended to use a professional appraiser in such cases to determine fair market value.
Historical valuation
If you haven’t obtained a valuation in the past, of course you can do one after the fact.
A real estate agent or professional appraiser should be able to review the history and comparable sales data you need to value your property.
