Taxing Matters

Actually I can't change the disposition date to 2021 for the PR sale because then the Ufile program has no warnings but concludes that large amounts of capital gains taxes are owing based on the proportion of the PR period over the entire period of ownership. So since in every scenario discussed above there is a warning flag or an inappropriate tax levy, I think I will just go back to the original tentative plan I indicated to begin with, and take your advice to just file it, and keep all records in case they ask about the (elevated) ACB I used for the acquisition. As you say everything will probably be OK when I explain what I was trying to do, and if they want to charge penalties for what I am doing I feel I have some pretty good considerations in my favour; Thanks again for explaining so much.

Thanks for your continued patience.. OK I tried that, entering two different purchases and sales of the same condo, with the first sale listed as a principal residence sale 2006 to 2014, and the second with No as the answer to the PR question, 2014 to 2021. Again the program will allow electronic filing, but again a warning message, this one saying the disposition date is before the minimum date (which should be in 2021) The date value for this field is before the required minimum. The date should be '01-01-2021' or after, you have entered '21-04-2014'. Click here to review your data. So I am just not sure which of these warnings is more of a red flag to CRA, it seems both indicate a missing deemed disposition that was not filed in 2014, but the second method (this one) more clearly states the amends I am trying to make...

Ah sorry to bother again, but now the Ufile program is warning that; T2091/T1255 - Designation of property as a principal residence The designation period is before the year of acquisition. Click here to fix Should I then change the date of acquisition back to 2006, or just answer no to the question did you sell a principal residence in 2021, i.e not even mention that it was once a principal residence?

Will do, and I really appreciate your helpful guidance.

Thank you very much TTS, but I forgot to ask one question, what should I put for the date of acquisition, the original date in 2006 or the date of the assessment and beginning of rental, 2014? Thanks again!

I am reporting the sale of a condo that was my principle residence from 2006 to 2014, then rented out from 2014 to 2021. At the time I began renting it I had a professional assessment done, so would like to enter that value as the ACB of the property for the calculation of capital gains from 2014 to 2021 (which will be 0). Should I just enter that value and wait for CRA to possibly ask me to justify it, or should I paper file my taxes and include a letter and a copy of the assessment? I did not at any time during the rental period ask for any CCA. Thanks in advance for any advice!

Further to this thread, I am reporting the sale of a condo that was principle residence from 2006 to 2014, then rented out from 2014 to 2021. I am wondering how to arrive at and justify the ACB of the property, since its value increased from 2006 to 2014, during the period it would fall under the Principle Residence Exemption. At the time I began renting it out, I had a professional assessment done, so would like to enter that value as the ACB of the property for the calculation of capital gains from 2014 to 2021. Should I just enter that value and wait for CRA to possibly ask me to justify it, or should I paper file my taxes and include a copy of assessment? Or should I somehow try to retroactively establish a deemed disposition of the property in 2014 (no idea if that is even possible). thanks in advance for any advice.