Real Estate

Home to rental - need to document house value?

  • Last Updated:
  • Aug 11th, 2020 12:41 pm
[OP]
Newbie
Sep 20, 2017
9 posts
1 upvote
Ottawa

Home to rental - need to document house value?

I've purchased a new home and am planning on renting my existing property. Have owned it for 5 years and it has appreciated substantially. Should I document this through an appraisal or other means so that when it is sold that portion of gain is not taxed as a capital gain? Understanding that the growth during the rental period will be taxed, but not the growth that happened while it was my residence.
3 replies
Sr. Member
May 23, 2006
762 posts
70 upvotes
Vancouver
I documented it using actual sales price of comparable property that was sold close to the date when i change the use of my property to rental.
Member
Jun 6, 2014
209 posts
71 upvotes
Toronto, ON
Don't think you need to based on the form to claim principle residence. The form asks total years owned and number of years as principle residence. And it's multiplied by the capital gain.
For example, buy 500k, sell 1M = gain 500k.
5 years principle. 20 years owned total.
500k x 5/20 = 125k exempt amount
Deal Addict
Mar 3, 2018
1596 posts
1556 upvotes
GTA
Except he has to report the deemed disposition of his former principal residence in the year the change of use to rental occurred. (T2091 form). Will need the FMV to complete form T2091 and to establish a new cost base for the rental going forward.

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