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Sold rental house for big loss, how to input this as terminal loss

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I am having a lot of trouble figuring out how to input this information into the system, I put in the information on form t776 but I am not sure where this would go.  Do I put this in CCA? If so how.

I bought the house for 335000, put in about 14000 in upgrades and sold for 290000, yes this sucks but we had no choice.  Where and how can I claim this as a terminal loss.  We bought it in 2007 and sold last year.

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If you have disposed of rental property in the tax year, in order to report a terminal loss, follow the steps below:

1- In the "QuikClik Navigator", select the item "Rental income" and in the page on your right, choose "T776 - Rental income property".

2- Return to the "QuikClik Navigator" and choose the item "CCA".

3- In the screen on your right, you must choose the depreciation category that corresponds to the rental property and enter the following information:

a) The "Opening balance of the undepreciated capital cost".

b) The "Proceeds of disposition of an asset".

c) The "ACB of the disposition".

d) In the field for "Description and amount of expenses associated with the disposition of assets", enter the expenses incurred for the sale of the building.

e) To the question "Did you liquidate all asset in this class?", answer "Yes" (you must liquidate all assets of this class).

4- You must also enter the information regarding the land in the appropriate page, even though this provision generates no loss. However, federal Schedule 3, as well as Quebec Schedule G if applicable, will be generated to indicate the capital gain (or loss).

If you have a terminal loss, it will be reported by the program at line 9948 of Form T776 federal and, for Quebec residents, at line 377 of Quebec form TP-128.

For more information regarding rental income, please visit the following CRA link:


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