Capital gain is the increase in the value of a capital asset as a result of the constantly fluctuating economy.
Capital gain is the increase in the value of a capital asset (investment or real estate) as a result of the constantly fluctuating economy. Usually, this asset is not one that is a regular source of income. This is usually the case with rental properties.
There is capital gain when the current selling price of the property is greater than the purchase price. When this occurs, the investor gains financially, although the gain is not realized until the property is sold. To determine the true value of the property, an appraiser is hired to assess the current market value. This value can be used in the future for taxation purposes, asset evaluation, or property sale.
The Revenue Agency will normally accept an appraisal report completed by a certified appraiser to compute capital gains taxes due to the CRA for a change of use from primary residence to income property. Our company regularly accepts requests for appraisals for capital gains purposes and has served many accounting firms and their clients over the years.
Please consult your own accountants for most up-to-date tax rules.