Capital gains on primary residence turned rental

[RogerBoucher]

This is the situation: My personal residence is in a perfect rental area in the town of Bonnyville. It is a bi-level suited home that would have good cash flow and I am planning on taking over my father`s acreage but will not be selling my current residence. My question is how do capital gains apply on athe eventual sale of personal residence now that it will be a rental. Are capital gains only applied on the appreciation after it became a rental?. Can someone please shine some light on this topic. thank you

 

[Thomas Beyer]

QUOTE (RogerBoucher @ Mar 25 2010, 10:53 PM) .. Are capital gains only applied on the appreciation after it became a rental?. ..
yes .. thus: get a recent (high) appraisal !

 

[Albertritchot]

If some of you are interested in reading the arcane rules from Canada Revenue Agency, there is an Interpretation Bulletin about the principal residence. Bulletin IT-120R6. Here is the link.


http://www.cra-arc.gc.ca/E/pub/tp/it120r6/README.html


http://www.cra-arc.gc.ca/E/pub/tp/it120r6/it120r6-e.pdf




The bulletin does identifies an election that permits the change of use that occurred to be deemed not to have occurred: at times an interesing tool.

 

[schoobie]

QUOTE (ThomasBeyer @ Mar 26 2010, 08:38 AM) yes .. thus: get a recent (high) appraisal !

I am looking for an appraiser to perform his analisys on my condo where I lived for the past 3 years in Calgary. Now this unit is on the market for rent, any ideas who would be able to perform a high appraisal?

 

[Thomas Beyer]

QUOTE (schoobie @ Jun 30 2010, 09:45 PM) I am looking for an appraiser to perform his analisys on my condo where I lived for the past 3 years in Calgary. Now this unit is on the market for rent, any ideas who would be able to perform a high appraisal?
appraisals have a small range .. +/- 2-5% .. get any appraiser .. and if you think it is too low get a 2nd or 3rd one ..