How does Capital Gain get calculated for underconstruction property?

[rjoshi123]

How does Capital Gain gets calculated for foreign under construction property that was bought before becoming resident of canada and was completed after becoming resident of Canada ?

 

[torontosm]

scenario
Jan,2012
Me and wife brought an property for $100k but paid only $40k as
it was still under construction

Feb 2014 (I came to Canada on Work permit, considered as resident as stayed more than 183 days)
total amount paid till date $60k but fair market value of property increased to $150k

Mid 2015
me and my wife landed as PR
total amount paid till date $80k but fair market value of property increased to $165k

Now assumption
Mid 2017 (Construction complete)
total amount paid $100k but fair market value of property increased to $200k

How would the capital gain be calculated?
I have derived CAD$ based on the value of currency at that time. Kindly comment if this is correct.

capital gains would be paid on the final value less your cost. So, in your case, the value will be determined as at the date of your sale (or when you become a non-resident) and all payments you have made will be deducted to arrive at your capital gain amount.

 

[rjoshi123]

This only applies if I bought property after I became resident of Canada, for new immigrants its the face market value when they become resident.
Something CRA considers as deemed disposed and reacquired.

 

[torontosm]

This only applies if I bought property after I became resident of Canada, for new immigrants its the face market value when they become resident.
Something CRA considers as deemed disposed and reacquired.

So your cost base would be $150k (the value when you became a resident) and the disposed value would be that when you sell the property or leave the country. Your capital gain, on the assumptions you provided, would be $50k.