Maggie RZH Posted March 5, 2021 Report Share Posted March 5, 2021 How to calculate the capital gain to reflect the change of rental percentage during the operation. To be specifically: In Aug 2014, the property changed from 50/50 (rental/personal) to 100% rental. It remains 100% rental until it was disposed in 2020. So, before Aug 2014, only 50% of the capital gain on the rental portion is taxable. When i was doing my taxes for 2014, I did treat property as 2 separate properties following the instruction from UFile support. One property from Jan /2014 to Jul /2014 with 50% rental, one from Aug/ 2014 to Dec/2014 with 100% rental. Now, how do i calculate the capital gain properly so that only 50% of capital gain from the date of purchase until Aug/2014 will be added to the final? Thanks a lot in advance. Link to comment Share on other sites More sharing options...
TheTaxSmith Posted March 5, 2021 Report Share Posted March 5, 2021 Hi Maggie RZH. Consider treating the disposition as two dispositions. One that was entirely rental and the other that was rental/personal with data entry of the years for the period of personal use. It would be easier to do that directly for Schedule 3 rather than through the rental statement I suspect. The problem may be in stating the years of personal use as a principal residence but maybe give it a try. Link to comment Share on other sites More sharing options...
Maggie RZH Posted March 5, 2021 Author Report Share Posted March 5, 2021 Thank you very much TheTaxSmith. I will try and let you know if I run into other complications while doing it. Link to comment Share on other sites More sharing options...
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