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Hello - in 2005 I purchased a condo.  I lived there until 2010.  I then began to rent this condo (I moved elsewhere).  I sold this condo in 2018.  How can I claim the sale of this condo in 2018 but pay only the capital gains associated with the period during which it was not my primary residence (late 2010 through late 2018)?

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You have an acquisition cost based on the Fair Market Value of the property on the day it ceased to be a principal residence. You did get a formal appraisal or at least 1-2 market assessments from a realtor at the time it changed to an investment property, did you not?  Property tax assessments are typically not acceptable since they can be quite wrong.

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Hi AltaRed - thanks for your reply!  Yes, I did get a property assessment for when I exited the property in 2010 (when it began to be a rental / investment property).  However, it's not clear to me how I input these values into uFile for taxation purposes.  My aim, knowing the value of the sale, is to somehow input the assessed values from 2010 so that I can claim the difference as a capital gain.  I just don't know how to do this in uFile.  Any advice?

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If, in the Interview Setup, you check marked "Capital gains (or losses) and capital gain history", you will see "Capital gains (or losses) and ABIL" in the left column and when you click on that, it brings up the "Capital Gains and ABIL" box...and one of the selections is "Real estate, depreciable property and other properties". Click on the + sign and you will get a sheet with a lot of data entry lines.  The assessed value of 2010 goes in the 'adjusted cost base of the property' data entry box. The proceeds of disposition box and expenses incurred in making the disposition are self-explanatory.

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Thanks again for your input.  That's very helpful.  One final question with respect to the years input into uFile.  As mentioned, I had lived in the property as my principal residence from July 2005 to September 2010.  I then started renting the property until it was sold in October 2018.  uFile asks for a series of dates that I'm hoping for your expertise on entering correctly.  

(a) Date of acquisition - would this be when the property was acquired in 2005, or when I started renting it in 2010?

(b) towards the bottom of the form it asks for details on when the property was designated as a principal residence.  If the answer in question (a) is to exclude the 2005 date (and instead use the 2010 date associated with the rental start and adjusted cost base, then I assume there is no need to enter the "Designation" info here related to when it was a principal residence.  Hoping you can confirm.  If the answer in question (a) is to include the original purchase date (2005), then assume that I would enter in the Designation section the years during which the property was a principal residence.  Please confirm.

Thank-you for your assistance.

Chris

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