The sale of your principal residence is generally exempt from capital gains taxation. The sale of an income producing property, however, is subject to capital gains taxation. To calculate the capital gain and applicable taxes once the property is sold, the Canada Revenue Agency (CRA) requires evidence of the property's value at the time you started using it as an income property. The best evidence of this value is a formal appraisal completed by a member of the Appraisal Institute of Canada, as a formal appraisal completed by a designated appraiser is typically the only type of valuation document accepted by government entities and the court system. This scenario most often occurs when a principal residence is converted to a rental property. 

​Premier Appraisal Services is experienced in this type of appraisal assignment and will provide you with a detailed written report with a clear explanation of the valuation analysis and conclusion. Ideally, you will obtain a current market value appraisal at the time of conversion from principal residence to income property. Otherwise, you will need a retrospective appraisal estimating what the value of the property was at the time of conversion.