Hi Pro Tax Community! I am dealing with a client who has sold their principal residence in 2019. I am completing the T2091 however, the property was acquired in 1996 but it changed from the use of a cabin/vacation property to their principal residence in 2003. The client no longer has his tax return from that far back so my question is 2 fold:
- When filling out the form it asks for the date of acquisition would this be 1996 or would this be 2003 when the change in use was reported?
- Without being able to verify on the 2003 return, how can I ensure that the client reported the change in use and if so what the FMV of the property was at that time.
I want to make sure that the client isn’t paying the capital gain twice for the overlapping years.
Any help is greatly appreciated!