Need help with CCA Recapture when asset has zero value

[DHHJ]

I sold a rental property in 2021 with 2 classes- class 1 for the building and class 8 for appliances. Both classes have had some CCA attributed to it over the years.

Going into this year, class 8 had a UCC of $2000 while the starting value was $3500. The appliances were complete trash so I junked them prior to the sale.

 

My question is- how do I complete the uFile Online interview for this class (the other class calculations are okay)? Like this?

What values do I use for the proceeds of the disposition and the ACB of the asset? Do I attribute a portion of my selling costs?

[TheTaxSmith]

ACB of the disposition should be the original cost as you noted above at $3,500. Proceeds will be zero. Based on the UCC of $2,000 you should have an end result of a $2,000 terminal loss. You do not need to include any selling costs as you did not sell them. In the sale agreement there should be no mention of appliances of course, otherwise you have a bit of a wrinkle.

[TheTaxSmith]

Actually there should have been a disposition of land as well. Trust you accounted for that.

[DHHJ]

Perfect. Thanks very much

[onome]

If the asset I disposed is a passenger vehicle which was acquired using an auto loan (for self-employment), all the proceeds will go to the bank to liquidate the loan. In this case, will I still report the actual proceeds of the sale or report a zero proceed since the bank is receiving the proceeds and not me? 

Edited March 26 by onome