In 2012, Rochelle Parsons acquired a home in Calgary, Alberta for $350,000, with $75,000 of this amount being the estimated value of the land. In 2014, she was required by her employer to move to London, Ontario. As she believed Calgary real estate was an outstanding investment, she decided to convert the home to a rental property, but would not be deducting CCA on it. Related to this decision was the fact that she decided to rent a home in London, rather than acquiring a second property in that city. In 2020, recognizing that she was unlikely to return to Calgary, she sold the Calgary home for $500,000, with $150,000 of this amount being the estimated value of the land. What is the minimum capital gain that Rochelle will have to recognize in 2020?

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The Answer of In 2012, Rochelle Parsons acquired a home in Calgary, Alberta for $350,000, with $75,000 of this amount being the estimated value of the land. In 2014, she was required by her employer to move to London, Ontario. As she believed Calgary real estate was an outstanding investment, she decided to convert the home to a rental property, but would not be deducting CCA on it. Related to this decision was the fact that she decided to rent a home in London, rather than acquiring a second property in that city. In 2020, recognizing that she was unlikely to return to Calgary, she sold the Calgary home for $500,000, with $150,000 of this amount being the estimated value of the land. What is the minimum capital gain that Rochelle will have to recognize in 2020?

In 2012, Rochelle Parsons Acquired a Home in Calgary, Alberta