Valuation Day Appraisals
Prior to 1972 captial gains were not taxed in Canada. Capital gains are triggered whenever real estate has increased in value over time, and it is then sold. The gain is calculated based on the difference between the adjusted cost base of the property and the proceeds of disposition. The adjusted cost base is the value of the property as at December 31, 1971. If the property was purchased subsequent to December 31, 1971, the adjusted cost base is the purchase price.