Sale of property

[rodman]

We are looking to file the sale of a real estate that has been transitioned from primary residence (from 2010 to 2015) to rental property (2015-2021). 

Would this be reported under "Investment and interest income and expenses" (where I could include the years in which it was the primary residence) or "Rental property income" (in which there was a previous thread discussing this: 

Thank you for your help.  

[TheTaxSmith]

On the rental statement data entry look for the question Did you dispose of property. Respond to that and complete the fields. At some point you can enter the years it was your principal residence. 

[rodman]

I have followed the instructions in the previous post to enter information under "Rental property income" and selected the appropriate CCA (Class 1, given it is a condo building, and Land - non depreciable property); however, I do not see the fields to enter the years in which the property was my principal residence. Am I missing something? 

[TheTaxSmith]

Ok so in the schedule for Class  1 - CCA you need to respond as Yes to the question "Did you dispose of an asset in this class". Complete the subsequent questions. For "Calculate the capital gain and carry the result on schedule 3" respond with "Do not calculate capital gain". For the last question respond appropriately to the liquidation of all assets in the class. Now open up a schedule under the Capital gains (or losses) and ABIL. Look for "Real estate, depreciable property, and other properties" and add that. At the bottom of that schedule look for the "Principal residence" section and complete that area. Then review after calculating your return for Schedule 3 and the correct gain from the rental period and the Principal residence and exemption forms.

[Taxing Matters]

Further to this thread, I am reporting the sale of a condo that was principle residence from 2006 to 2014, then rented out from 2014 to 2021.  I am wondering how to arrive at and justify the ACB of the property, since its value increased from 2006 to 2014, during the period it would fall under the Principle Residence Exemption.  At the time I began renting it out, I had a professional assessment done, so would like to enter that value as the ACB of the property for the calculation of capital gains from 2014 to 2021.  Should I just enter that value and wait for CRA to possibly ask me to justify it, or should I paper file my taxes and include a copy of assessment?  Or should I somehow try to retroactively establish a deemed disposition of the property in 2014 (no idea if that is even possible).

 

thanks in advance for any advice.   

[amanyad565]

Thanks for reaching out! From what I understand, you're looking to file the sale of real estate that was transitioned from primary residence to rental property. I think the best way to go about this would be to report it under "Investment and Interest Income and Expenses". This way, you can include the time it was a primary residence. I'm kinda new to this forum, but I did a quick search and it looks like there's a previous thread discussing this in the "Rental Property Income" category. Might be worth checking out if you haven't already. Also, check out lentor hills condo for more great options.