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Capital Gains on estate property
11-04-2014, 06:34 AM
Post: #1
Capital Gains on estate property
My father passed in April of this year and since then we have rented his home as a holiday destination. My question is as the home was assessed at 900K by the provincial assessment authority, however we commissioned a processional appraisal which showed a fair market value of 1,200K. My brother wants to complete probate in BC using the assessed value and I want to use the appraised value as I understand the estate would be responsible for Capital gains since the date of death as their has been a change of use since then. Can anyone help me with this.
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11-09-2014, 08:59 AM
Post: #2
RE: Capital Gains on estate property
(11-04-2014 06:34 AM)woodd7 Wrote:  My father passed in April of this year and since then we have rented his home as a holiday destination. My question is as the home was assessed at 900K by the provincial assessment authority, however we commissioned a processional appraisal which showed a fair market value of 1,200K. My brother wants to complete probate in BC using the assessed value and I want to use the appraised value as I understand the estate would be responsible for Capital gains since the date of death as their has been a change of use since then. Can anyone help me with this.

Looks like you cannot agree with your brother. Is the property staying in the family? You both have different agenda? There are pros and cons.

Accounting Troubleshooter
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01-24-2015, 08:30 AM
Post: #3
RE: Capital Gains on estate property
For a change of use it is best to use Fair Market appraisals.
Understanding your situation as you said, you are correct in knowing that capital gains will need to be taxed at a greater amount if using the higher appraisal value.

If you both cannot agree, could you get a third opinion for appraisal?

If you cannot decide, it may be best to sell the property to actually be able to pay the capital gains tax needed.
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