ACB of Canadian real estate upon return to Canada

[nrobh]

Greetings, all. I'm a Canadian citizen trying to determine the adjusted cost base of my Canadian real estate when I resume Canadian residency this month and whether or not a recapture of CCA will/can/should be triggered:

- converted Canadian primary residence to rental unit April 2019
- emigrated to USA July 2019, elected deemed disposition of rental unit at FMV of $105k
- claimed CCA 2019-present
- resuming Canadian residency in a few weeks but keeping rental unit as a rental unit, current FMV of $179k

What will the ACB be when I sell the house in the future? $105k? $179k? My understanding is that real estate is exempt from the "deemed acquisition rule" that other types of property benefit from upon return (stocks, etc), but I also thought that Canada isn't supposed to tax gains accumulated during non-residency. If as it stands the ACB is $105k, would electing to unwind the deemed disposition somehow allow me to establish the ACB as $179k? Any negative consequences to unwinding?

Also, it's not clear to me if there will be any "deemed sale" of the property that would trigger a recapture of CCA and set the ACB to the "sale" price. Or would that be only when I actually sell for realsies?

Thank you!

[nelsona]

CRA retains the right to tax Cdn real estate regardless of your residency. The ACB will be based on the value when you elected upon departure.

[nrobh]

Thank you for clarifying, nelsona!

And I will only have to recapture CCA once I actually sell the house (or convert it back to primary residence), correct? Not when I resume residency.

[nelsona]

Correct

[Lilia33]

Whether you are a buyer, seller or investor, DOM Real Estate offers a seamless experience with [url=https://dom.com.cy/en/cyprus/elite/]luxury real estate cyprus[/url]. With updated listings, transparent pricing and free services, they are truly the best in the market! And these are not just words, but reality. It is definitely worth your attention.