Many options .. some illegal .. some allow you to post-pone / defer taxes:
ILLEGAL OPTIONS (not recommended by the author, but just to clarify what you could do)
You could not declare it. This is illegal. But lying pays in life for some people. I hear that many folks do that and never get caught. Yes, even some REIN members.
You could also declare a building as "inventory" and roll it forward, much like 1031 exchange in the US. Also illegal here in Canada, but some folks do it and get away with it.
TAX DEFERRAL OPTIONS:
You could do a section 85 rollover at a lower cost base and post-pone taxes .. usually doen between related parties such as husband and wife or from person to his company or vice versa.
You could sell shares in the company that hold the asset. The building doesn`t get sold, just the company shares.
You could also do a LONG TERM LEASE or a LONG TERM AGREEMENT-FOR-SALE. So instead of selling a $1M building for $2M today, you sell it for $2M (or $1) in 20 years, and collect XXX $s per year for 20 years. You pay tax on income for 20 years, then a capital gain in 20 years, or none. Consult with a lawyer and accountant.
Example: building is worth $2M. You bough it for $1M. You lease t for 20 years for $150,000/year. This is taxable as income, every year for 20 years subject to certain deductions like depreciation or interest expenses you may have on the property you still own. In 20 years the book value is 0 and you sell it for $1. Taxes are spread out over 20 years as is income. Consult with a lawyer and accountant.
You could do a vendor-take-back mortgage (VTB), i.e. a very high 2nd mortgage at some XYZ % interest rate. Capital gains is payable one initial received cash and then again on VTB cash when it gets paid, years later.
You could also NOT SELL IT. Why sell, when you can re-finance ?