Real Estate

Moving out of Principal Residence

  • Last Updated:
  • Sep 21st, 2020 10:06 am
[OP]
Jr. Member
Jan 19, 2009
133 posts
8 upvotes

Moving out of Principal Residence

Hi all,

I moved out of my principal residence (condo located downtown) into a detached home along the northern part of the city earlier this year. The condo is currently leased. If I choose to sell the condo in the future, what steps do I need to take now, in order to ensure that I have enough evidence of the condo value at the time of me moving out (earlier this year), to present to the CRA in order to protect the principal residence CG exemption? I was told by a friend I may need to get an appraisal? Is it enough to save records of recently sold units in the building around the time I moved out?
4 replies
Sr. Member
Feb 19, 2019
812 posts
872 upvotes
Stouffville ON
hybridfx2 wrote: Is it enough to save records of recently sold units in the building around the time I moved out?
Yes, generally it's enough, if cra requests more you can than hire appraiser for tax purposes.
Don't forget to file deemed disposition of your principal residence on your 2020 tax return.
Full Time and Full Service Realtor
Jr. Member
Dec 12, 2011
121 posts
94 upvotes
Toronto
Wont an appraiser's value be much lower than market value? I've had appraisals done in the past (not for this purpose) and they were always much lower than my perceived value.
[OP]
Jr. Member
Jan 19, 2009
133 posts
8 upvotes
clydelee2020 wrote: Wont an appraiser's value be much lower than market value? I've had appraisals done in the past (not for this purpose) and they were always much lower than my perceived value.
Yes appraisal will typically be lower - good point. But if the CRA challenges you on the value how else do you prove it? At least appraisals are a third-party and typically relied on by the banks.
senasena wrote: Yes, generally it's enough, if cra requests more you can than hire appraiser for tax purposes.
Don't forget to file deemed disposition of your principal residence on your 2020 tax return.
Thanks
Sr. Member
May 3, 2013
643 posts
199 upvotes
Toronto
Depends how far out you will be selling. I couldn't find an appraiser that would do an appraisal over 10 years old, the CRA said I could do my own (as a Realtor).

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