Quote:
Originally Posted by loob job
I have owned a few rental properties and i believe you are wrong about the appraised value of your unit being the base of the cost.
Upon sale, any profit you earned on the rental property over and above your initial cost will be treated as a capital gain. Capital gains are taxed at 50 percent of the gain, whereas recapture is 100 percent taxable,” That is right from Turbotax.
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If you bought the place initially to earn income, yes. But if it was your principal residence first, which you then turned to a rental unit, you're deemed to have sold it when you did that conversion and that deemed value is your cost base when it's a rental property. I suggest an appraisal as that cost base is easy pickings for an auditor.
https://www.canada.ca/en/revenue-age...anges-use.html