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oemro

Capital loss or terminal loss?

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A newbie here.

 

Looking for an answer for capital loss/gain.

 

I have sold one of my two properties in 2012 because of job change. This property has never been used for rent.   

 

sold price: 287,000      year 2012 

purchase price: 278,000    year 2011

Outlays and expenses:       13,722  year 2012

 

I don't understand why Ufile gave me 0 gain/loss in Schedule 3.

 

Did I input the information to a wrong place (Capital Gain & ABIL : Real estate and other depreciable property)?

Is this a bug? If this is a terminal loss, where should I input this to offset my net income of 2012?

 

Your sharing will be greatly apprecaited. 

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Must determine if the property was an "income producing" or "personal-use" property 

 

"income producing"

Building: capital gain acceptable, capital losses not allowed, terminal loss acceptable

Land: capital gains and losses acceptable

 

"personal use"

Building and Land: capital gain acceptable, capital losses not allowed

 

If this is a terminal loss, where should I input this to offset my net income of 2012?

T776 Statement of Real Estate Rentals

 

 

Reference: CRA Capital Gains guide T4037

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Thanks a lot Axation,

 

From my understanding, this is definitely a "personal-use" property, because I didn't receive any rental income from it.

 

I checked the T776 as you mentioned, but again this is for "incoming producing" properties.

 

I learnt from your explaination, for "personal use" properties, capital gain is acceptable, capital losses is not allowed.

 

So for my case, is this a "terminal loss"? or a "capital loss" somehow which is not recognized by Ufile/CRA? 

 

  

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So for my case, is this a "terminal loss"? or a "capital loss" somehow which is not recognized by Ufile/CRA?

 

Neither

 

-------------------------------------------------------------------------------

CRA Capital Gains guide T4037 - Page 20

 

You have to report any capital gain from

disposing of personal-use property.

 

However, if you have a capital loss, you usually cannot

deduct that loss when you calculate your income for the

year.

 

In addition, you cannot use the loss to decrease capital

gains on other personal-use property. This is because if a

property depreciates through personal use, the resulting

loss on its disposition is a personal expense.

 

These loss restrictions do not apply:

■ if you disposed of personal-use property that is listed

personal property (see the next section); or

■ to a bad debt owed to you from the sale of a personal-use

property to a person with whom you deal at arm’s

length. For more information, see “Bad debts” on page 19.

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Thanks again,

 

This is so complicated.

 

However, I feel this is unfair by my instinct, how come I have to report capital gains, but I can only bear capital loss without any chance to claim it and decrease my capital gain?

 

Anyway, if I have to sell my property in the future, I probably need to collect some rentals first in order to quality any potential capital gains or loss.

 

    

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