Hi guys,
In 2015 I purchased a 3 unit building (Duke) for $134,500. I lived in one of the three units until Nov 2021 when I moved to a new property. I am now continuing to rent the 3 unit. The value of real estate in the area and the building has gone up substantially during this time.
From what I have read when the use of the Duke changes from my residence to a rental only it is essentially considered a sale the asset. To capture this on my taxes for 2021 I entered it in the shcedule 3 section of Ufile as a sale and have completed T2091 form since it was my principal residence. Since there is no sale price as it was not actually sold I determined a fair market value (FMV) based on other similar buildings selling in the area to be $352,350. I used this amount as the proceeds of the disposition.
Under the CCA claim form I showed a disposition of the remianing amount of UCC under the previous value so the UCC at end of year for the line is now 0. I entered a new asset with UCC of the $352,350. I think I could also do this by adding the differen to the existing asset instead of showing one as liquidated and creating a new one.
Is this the correct way to do this?
Thanks
-Ken
