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by Tiktaalik 84 days ago
Easier than you'd think.

The value of homes is very well known and assessed annually in many provinces (some have weirdly become laggards). So no real problem there.

Any piece of art that is of any real value would have a provenance and it would be very well known what the value it was at any given time and at sale. If no one knows the artist or can determine the value it is very safe to say its value is nil.
2 comments
jedberg 84 days ago
It's really not that easy at all. Especially with art or jewelry. We can know the current value. It could even be a very famous piece of art.

But these types of things are found all the time in attics and basements. Art especially is moved around without sales records all the time, and jewelry even more-so.

Heck, I have things I bought myself that I have no idea what I paid for them.

But I'd sure be upset if I had to pay cap gains taxes on these things assume their prior value was zero.

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toast0 84 days ago
House purchase price might be easy to determine; although old records aren't always great; certainly the price paid indicated on the front of the deed is often a formal requirement value, not the actual price, so hopefully the real price was written down on the recorded deed too. I wouldn't rely on assessed values, at least without a lot of cross referencing many jurisdictions setup assessments so that they reflect market value, but jot directly.

On the other hand, cost basis in a house is not just the purchase price. Many improvements add to the cost basis, and good luck finding records to support that. Especially for a home owned by your parents since the 1970s.

That doesn't make it equitable to step-up on death; but it does make it very convenient.

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Tiktaalik 83 days ago
yeah it's not perfect, but there's absolutely well enough data for the ballpark appraisal. Onus is not on the government to do any of this. So keep records folks.

I think the government now actually does keep tax records of buying and selling homes (became a bit of a question during the foreign buying debate) so going forward it's going to be no concern.

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