Jump to content
Français

Capital Cost Allowance and Capital Gains for partial primary residences


Kennedy

Recommended Posts

Hi guys,

In 2015 I purchased a 3 unit building (Duke) for $134,500. I lived in one of the three units until Nov 2021 when I moved to a new property. I am now continuing to rent the 3 unit. The value of real estate in the area and the building has gone up substantially during this time.

From what I have read when the use of the Duke changes from my residence to a rental only it is essentially considered a sale the asset. To capture this on my taxes for 2021 I entered it in the shcedule 3 section of Ufile as a sale and have completed T2091 form since it was my principal residence. Since there is no sale price as it was not actually sold I determined a fair market value (FMV) based on other similar buildings selling in the area to be $352,350. I used this amount as the proceeds of the disposition. 

Under the CCA claim form I showed a disposition of the remianing amount of UCC under the previous value so the UCC at end of year for the line is now 0. I entered a new asset with UCC of the $352,350. I think I could also do this by adding the differen to the existing asset instead of showing one as liquidated and creating a new one.

Is this the correct way to do this?

Thanks

-Ken

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...