Thanks But it did not help i was going to call tax canada but would have to wait 2+ hours. anyway I found the answer. Here it is in case somebody needs help
"The increase in value of the home from time of purchase is used to calculate the gain before deducting the principal residence exemption. If a home has been owned since before 1972, only the increase in value since December 31, 1971 is used to calculate the gain before deducting the principal residence exemption."
