Question
Capital gains for gifted property
I have a client that was gifted a cottage in 1994 from her mother. The legal documents state it was gifted and the Land Transfer document shows a transfer at $2. My understanding is that CRA deems a transfer at FMV; however, the mother did not record the sale and capital gains in 1994. What value is to be used for the cost of the cottage in 2020 when it was sold in order to calculate the capital gains?
