Capital Gains Appraisal

When it comes to taxes in Canada, certain properties that increase in value are subject to the capital gains tax. A capital gain occurs when a property is sold or otherwise disposed of, and the amount that is realized on the sale is higher than the cost you originally paid for the property. In these circumstances, you are generally required to report the gain to the Canada Revenue Agency (CRA) which may be subject to tax. Carty Appraisals can provide the appraisal report required by the CRA.

It’s important to understand that when you sell a property in Canada, you are subject to the Canadian Income Tax Act, which states that any capital gains must be reported and that 50% of the gains must be included in your taxable income. As such, it’s important to know the value of the property at the time of sale, as it is what will determine the amount of taxes you will owe. Therefore, any time you are selling a property that realizes a capital gain, you must hire a professional appraiser. This person will assess the property, and determine its fair market value on the day of the sale, as this is what will be used to calculate your capital gains. This appraisal must be done by a qualified professional to be recognized and must meet all of the requirements outlined by the Canada Revenue Agency.

The CRA recommends that a real estate appraiser be used to accurately assess the fair market value of the property. The appraiser will review the current market value of similar properties in the same neighbourhood, and adjust for any unique features or conditions related to the subject property. It is important to ensure that the appraiser has the necessary experience and qualifications to provide a valid evaluation of the property.

In addition to the services provided by an appraiser, you may also be required to provide additional documentation to the CRA such as the purchase price, a closing statement from the sale, and a description of any renovations or renovations/improvements made to the property.

To accurately report capital gains and minimize tax liability, it is important to work with a professional real estate appraiser. Carty Appraisals can provide an independent and unbiased analysis of the subject property and ensure that the fair market value is accurately reported to the CRA.