rjg843
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Posts posted by rjg843
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Sorry, I know this topic has come up a few times now but I'm still a bit lost on how to properly claim the sale of a rental unit (condo).
I created a CCA form - Class 1 - 4% for the sale, however I'm not sure if I should also create a Capital gain (loss) form as well. Do I need to do this for the same sale?
Once I had the CCA form filled in, it appears that the sale seems to have created a net negative rental income in the software. This in turn has reduced my wife's income to a negative number (she owned the condo herself - before we were married). This doesn't seem correct to me since as far as I know a Capital loss (i.e. sale of the rental) can't be used to reduce income. Am I missing something here?
Sale of rental property (loss) - income effected?
in 2020
Posted
Thanks for the quick reply.
Yes, a terminal loss was created and no, we've never claimed CCA before. Also, yes, the rental was sold at a loss (less than it was purchased for).
I guess the numbers are correct then, they just caught me off guard as I didn't think that a loss in this situation could be used to reduce income.
Thanks again.