We purchased property in 1977 and lived in house until 1987 when we separated a parcel off original property and built new home where we lived until 2017. How do I figure an adjusted cost base for this?
The new home will use an ACB of the building construction cost plus any additional renovation added since built. The land will use a prorated value per square foot based on the original purchase of the lot.
The original property will have a taxable capital gain using the FMV from 1987 or 1994 if Capital Gains Election was invoked on form T664 in that year.