Reporting Capital Gains for Rental Property that was also a Principal Residence for a time

[V4D3R]

Hi everyone,

Any idea on what we need to submit in UFile for the sale of a rental property but was used as a principal residence for two years? I've filled the capital gains section with the relevant information, but nowhere does it ask if its entire timeline was a rental property.

I lived in it myself for 2 years and then rented it out for the next 9 years until I sold it.

Any help would be appreciated!

[BLSM]

You should have determined the FMV of the property at the time of change of use.

I don't know if this will help, but you should find lots of info on the CRA site.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036/rental-income.html#P1215_82090

 

[Geo123]

Hello V4D3R,

To report the sale of your principal residence, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select the "CRA Questions" topic.
2. On the page that appears, go to the line "Did you sell a principal residence in 2022?". The sale of a principal residence must now be reported with any principal residence designation.
3. If you answer "Yes", a topic will be generated in the "Left-side menu on the Interview tab" with the heading "Capital gains (or losses) & ABIL".
4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "Personal use property (Including the principal residence)".
5. On the page that appears, enters the relevant information in the first fields. If you are a co-owner of the residence with your spouse, go to the line "Your percentage share of capital gain/loss recorded here" enter your percentage.
6.The following line will be generated "Do you wish to transfer the remainder to your spouse's tax return (if applicable)?".
7. If you answer "Yes" you do not need to answer the CRA's question "Did you sell a principal residence" in your spouse's file because the program will transfer the information into their file.
8. Then go to the "Principal residence" section and go to the line that starts as follow: "Designation of the property as a principal residence to the Canada Revenue Agency (CRA)." and answer, "Yes" if the property that was sold was your principal residence as defined by the CRA and enter the address of the principal residence.
9. Next, go to the "Designation" section and select the period (taxation years) during which that property was designated as your principal residence. In the fields that follow, enter the year of beginning and the year of the end as the principal residence.
10. However, if you have not permanently resided in your principal residence, click the plus sign "+ Add another" icon to create another occupancy period for your residence.
11 If you rented your residence during the unoccupied period, go to the line "Change in use of property and election under section 284 or 286.1", and by selecting "Yes" a field will be created to indicate the period (from what year to what year) during which the residence was leased.
----------------------------------------------------------
FYI - #11 Designation
Select the taxation years period that property was designated as principal residence
From
 To
 Add Another “+”  -Click ‘+’ to enter period(s)

You should also consult - Changing all your principal residence to a rental or business property
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use/changing-your-principal-residence-a-rental-business-property.html

 

[V4D3R]

10 hours ago, Geo123 said:

Hello V4D3R,

To report the sale of your principal residence, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select the "CRA Questions" topic.
2. On the page that appears, go to the line "Did you sell a principal residence in 2022?". The sale of a principal residence must now be reported with any principal residence designation.
3. If you answer "Yes", a topic will be generated in the "Left-side menu on the Interview tab" with the heading "Capital gains (or losses) & ABIL".
4. On the page appearing to your right, click on the plus sign "+" icon to the right of the line "Personal use property (Including the principal residence)".
5. On the page that appears, enters the relevant information in the first fields. If you are a co-owner of the residence with your spouse, go to the line "Your percentage share of capital gain/loss recorded here" enter your percentage.
6.The following line will be generated "Do you wish to transfer the remainder to your spouse's tax return (if applicable)?".
7. If you answer "Yes" you do not need to answer the CRA's question "Did you sell a principal residence" in your spouse's file because the program will transfer the information into their file.
8. Then go to the "Principal residence" section and go to the line that starts as follow: "Designation of the property as a principal residence to the Canada Revenue Agency (CRA)." and answer, "Yes" if the property that was sold was your principal residence as defined by the CRA and enter the address of the principal residence.
9. Next, go to the "Designation" section and select the period (taxation years) during which that property was designated as your principal residence. In the fields that follow, enter the year of beginning and the year of the end as the principal residence.
10. However, if you have not permanently resided in your principal residence, click the plus sign "+ Add another" icon to create another occupancy period for your residence.
11 If you rented your residence during the unoccupied period, go to the line "Change in use of property and election under section 284 or 286.1", and by selecting "Yes" a field will be created to indicate the period (from what year to what year) during which the residence was leased.
----------------------------------------------------------
FYI - #11 Designation
Select the taxation years period that property was designated as principal residence
From
 To
 Add Another “+”  -Click ‘+’ to enter period(s)

You should also consult - Changing all your principal residence to a rental or business property
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/changes-use/changing-your-principal-residence-a-rental-business-property.html

 

Thanks Geo. Everything is clear except for #11. I do not see the line "Change in use of property and election under section 284 or 286.1". Any additional guidance on that would be appreciated.

[Geo123]

Hello V4D3R,

Welcome.  For "Change in use" go to the bottom of the page : 

Change in use of property and election under section 284 or 286.1 < --- SELECT YES

 

 

 

 

 

 

Change in use of property and election under section 284 or 286.1  Yes  No 

 

 

From

 

 

To

 

 

 

Were you a non-resident throughout the year of acquisition of the property?

 

[V4D3R]

7 hours ago, Geo123 said:

Hello V4D3R,

Welcome.  For "Change in use" go to the bottom of the page : 

Change in use of property and election under section 284 or 286.1 < --- SELECT YES

 

 

 

 

 

 

 

Change in use of property and election under section 284 or 286.1  Yes  No 

 

 

From

 

 

To

 

 

 

Were you a non-resident throughout the year of acquisition of the property?

 

This unfortunately does not come up for me. This is what I see:

 

 

That's the bottom of the page and I cannot scroll further. I followed your instructions carefully but just that question isn't showing up.