For the purpose of computing the capital gain from the deemed disposition of a property (e.g., house) from rental to personal use, or vice versa, does CRA consider the fair market value of the property at the time of the change in use of the property to establish the proceeds of disposition to the taxpayer? CRA responded:
[O]n a deemed disposition under paragraph 45(1)(a), it is necessary to determine the FMV of the property as of the date of the change of use for the purposes of calculating the capital gain that could result from the deemed disposition.