Tax planning & capital gains
Why it matters
A cost base your accountant can file behind.
Capital-gains reporting depends on two values: what the property was worth when its use changed or when it was acquired, and what it is worth now. An appraisal establishes those figures with reasoning attached, so the gain you report is supported rather than estimated.
The most common request is a retrospective value: the day a principal residence became a rental, the day a property was inherited, or the day a non-resident acquired it. We value the property as of that date using the sales that had occurred by then, not today's market.
Reports are prepared for accountants and tax advisors and are written to survive review. Each states the effective date, the comparables relied on and every adjustment made, signed by the appraiser who inspected the property.
Before the day of the appraisal
What to have ready
Not every item applies to every file. What's needed depends on the scope of the appraisal, and the more you can provide, the more complete the report will be.
The appraisal process
How do you determine value as of a past date for the CRA?
Under CUSPAP, this is handled through a retrospective valuation. We establish fair market value as of the exact effective date, such as a date of death, a change in use, or a gifting date, using only the comparable sales and market conditions that existed at that time.
Will this appraisal stand up to a CRA audit or review?
Yes. A CUSPAP-compliant appraisal by a designated appraiser provides the objective, defensible evidence of value the CRA expects. Our methodology, data sources and reasoning are documented so the report holds up to scrutiny.
What effective date do I need for a change of use or deemed disposition?
It depends on the tax event. Changing a principal residence to a rental, or the reverse, requires the fair market value on the exact date of the change. Your accountant or tax professional can confirm the precise statutory date your filing requires.
Can my accountant or tax lawyer work with you directly?
Yes, and it is often the most efficient route. With your permission, we coordinate directly with them so the intended use, report format and effective dates match your filing requirements.
What records do you need for a retrospective appraisal?
Any historical documentation for the target date helps, such as past purchase contracts, property condition details, photos, or records of renovations and capital improvements completed before the effective date.
Related services
Other appraisal services.
Filing a gain?
Send us the property address and the required effective dates. We will follow up promptly with a flat-fee quote and our first available appraisal time.