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New Member
posted Nov 18, 2021 9:13:50 AM

For Capital Gains, does CRA allow mpac property assessment to demonstrate FMV?

0 2 523
2 Replies
Level 2
Nov 22, 2021 11:08:33 AM

The use of the MPAC Property Assessment is not recommended as proof of the Fair market value (FMV).

As per the Canada Revenue Agency (CRA): Fair market value (FMV) is generally the highest dollar value you can get for your property in an open and unrestricted market between an informed and willing buyer and an informed and willing seller who are dealing at arm's length with each other.

Therefore, the CRA encourages that you use a professional appraiser, evaluator, or other individuals who are accredited in the field of evaluation. The CRA can be contacted at 1-800-959-8281

 

If you require further assistance please contact our phone support team, or contact us directly on Facebook or Twitter.

 

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Level 3
Nov 25, 2021 2:07:11 AM

No, CRA doesn't allow MPAC property assessments to demonstrate FMV. 

 

As per CRA: 

 fair market value is normally the highest price that the property could bring in if the market was open and unrestricted and the buyer and seller are both willing, knowledgeable, informed, prudent, and independent of one another

 

For the change in use (and non-arm's length transactions), it is recommended that you pay ~$100 for an appraiser to come and appraise your home. MPAC assessments are not accepted as reliable indicators of FMV.

 

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.