AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
For Canadian tax, a house you receive as a gift is treated as acquired at its fair market value on the date you received it; the CRA’s T1135 guidance says gifts and inheritances take that value as their cost. Record a dated valuation in naira, the exchange rate for that day and the transfer documents now, because your Canadian gain or loss on a later sale is measured from that figure in Canadian dollars.
Nigerian parents often transfer a family house to a child abroad while they are alive, sometimes informally, sometimes with a deed of gift. Years later, when the house is sold, the question for a Canadian resident is: what did it cost me? You paid nothing, but for Canadian tax the answer is not zero.
The rule: fair market value on the day of the gift
The CRA’s questions and answers on Form T1135 (modified 19 October 2026) state that property received as a gift, bequest or inheritance takes its fair market value at the time of receipt as its cost. That figure becomes your adjusted cost base for capital gains purposes.
If you received the house before you became resident in Canada, a related rule applies. CRA Folio S1-F3-C2 (¶2.74) says a non-resident who owns property abroad and becomes a Canadian resident is generally deemed to acquire it at fair market value at that time. Either way, growth in value before your cost date is outside the Canadian gain.
Converting to Canadian dollars
The CRA’s capital gains guide, T4037, says the cost of foreign property is converted at the exchange rate when it was acquired, and the proceeds at the rate when it is sold. For a gifted house, the acquisition date is the date of the gift. The Bank of Canada does not publish a naira rate, so use a source the CRA would accept (widely available, verifiable and used consistently) and keep a copy. Our guide to a CAD cost base for naira assets covers the choice of rate.
Worked example (illustrative figures)
| Item | Naira | Rate (example) | CAD |
|---|---|---|---|
| Value on date of gift, 2022 | ₦150,000,000 | ₦1,100 per $1 | $136,364 |
| Sale price, 2027 | ₦300,000,000 | ₦1,600 per $1 | $187,500 |
In this example the Canadian capital gain, before selling costs, is $187,500 minus $136,364, which is $51,136. At the one-half inclusion rate the T4037 guide describes, $25,568 would be taxable. Without a valuation at the gift date, you would struggle to support the $136,364 cost if the CRA asked.
What to record now
- A dated valuation of the house as at the gift date by a qualified estate surveyor and valuer in Nigeria, with photographs and a description.
- The transfer documents: deed of gift or deed of assignment, and evidence it was stamped and registered. An April 2026 journal analysis of the Nigeria Tax Act 2025 notes that instruments must be stamped within 30 days of execution and that unstamped instruments are not admissible in civil proceedings.
- Consent and title: where the state requires Governor’s Consent for a transfer (the Lagos Lands Bureau, for example, runs a 30-day consent process), keep the approved consent and the updated title.
- The exchange rate you used for the gift date and its source.
- Later improvements: receipts for any extension or major renovation, which add to your cost.
If the gift was informal
If your parents simply told you the house is yours, legal ownership may still be in their names. For Canadian purposes, what you own, and when you acquired it, follows the legal position. Regularising the title with a Nigerian lawyer protects you both in Nigeria and when proving your cost in Canada.
Common mistakes
- Using the price your parents paid. Their original cost is not your cost. Your cost is the value on the day you received the house.
- Using today’s exchange rate. Cost is converted at the rate on the acquisition date, not when you sell or file.
- Valuing it years later. A retrospective valuation is possible, but a report made at the time is far stronger evidence.
- Forgetting selling costs. The T4037 guide lists outlays such as commissions, legal fees and surveyors’ fees, which reduce the gain when you sell.
While you own it
- If you rent it out, the rent is your income; see family-managed property income.
- If it is not personal-use property, its cost counts towards the T1135 $100,000 test.
- If family members or you live in it, it may be personal-use property, and you could consider whether it can be a principal residence; see Can a house in Nigeria be your principal residence?
Where Pryme fits
If you pay for a valuation, stamp duty or legal fees from Canada, a Pryme account lets you pay in naira and keep a verifiable receipt from VerifyDoc.ai (receipts) for each cost, which helps when you later prove what you spent.
Questions people ask
What is my cost base for a house my parents gave me in Nigeria?
Its fair market value on the date you received it, converted to Canadian dollars at that day’s rate.
What if I got the house before moving to Canada?
The CRA generally deems a new resident to acquire foreign property at fair market value when they become resident.
Do I need a valuation?
It is the best evidence of your cost. A dated valuation by a qualified Nigerian valuer at the gift date supports the figure if the CRA asks.
Does a gifted Nigerian house count for the T1135?
Yes, at its cost, unless it is personal-use property. Gifts take fair market value at receipt as their cost.
Sources
- CRA: Questions and answers about Form T1135 (modified 19 Oct 2026) · accessed Oct 2026
- CRA Income Tax Folio S1-F3-C2, Principal Residence (modified 30 Jan 2024) · accessed Oct 2026
- CRA guide T4037, Capital Gains (modified 11 Feb 2026) · accessed Oct 2026
- Odubunmi, NAU Journal of Public and Private Law 3(2): stamp duties under the Nigeria Tax Act 2025 (Apr 2026) · accessed Oct 2026
- Lagos State Lands Bureau: home page · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.