Why it matters
The value on the day the use changed.
When a property changes between principal residence and rental use, the CRA treats it as a deemed disposition at fair market value on that date. An appraisal fixes that value with evidence, so the gain calculated from it is defensible.
The date is the whole exercise. WesTech values the property as of the day the use actually changed: the day the tenant moved in, the day you moved out, or the day the space was converted, using the comparable sales that had occurred by then.
Reports are prepared for owners, accountants and tax advisors, and state the effective date, the comparables relied on and every adjustment, 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
Which effective date should the appraisal use?
The appraisal must be tied to the exact calendar date the property's use officially changed, such as transitioning a principal residence to a rental property, rather than the date of filing or notification. If you are uncertain of the precise date, your accountant or tax professional can confirm it.
What if the change of use happened several years ago?
Retrospective valuations for past tax events are standard practice. Under CUSPAP guidelines, we establish the fair market value using only market evidence and comparable sales that occurred on or before that historical effective date, clearly documenting all information relied upon.
Does adding a basement suite or converting a portion of the home count as a change of use?
Yes, a partial conversion, such as adding a legal secondary suite or operating a home business, often triggers a change of use for that specific portion of the property. We value the property accordingly and clearly document how the gross living area or functional utility was split.
Do I need a current market value in addition to the historical value?
Only if you are also disposing of or selling the property simultaneously. Sharing the specifics of your tax filing requirement allows us to confirm whether you require a single historical valuation or dual effective dates.
Related services
Other appraisal services.
Property changed use?
Send us the property address and the date the use changed. We will follow up promptly with a flat-fee quote and our first available appraisal time.