How to submit Capital gains for rental property bought in 1988 in UFile2024

[S Jhangiani]

Hi ,

Does anyone have a sample table of how to claim Capital Gains for a rental property I bought in 1988 and sold in May 2024? I have used Ufile all the past years. I need a guide to plug the right deductions for 2024 tax returns. Just trying to be proactive. 

Thanks

[Geo123]

Hello S Jhangiani,

Rental income - Disposition of real estate

If you have disposed of rental property in the tax year, please follow the steps below:

 

1. On the "Left-side menu on the Interview tab", select "Interview setup".

2. On the screen that appears on the right, go to the "Rental income" group, check the box for "Rental property income", and click "Next" at the bottom of this page.

3. On the "Left-side menu on the Interview tab", click on "Rental Income", and on the new page that appears to the right, select "T776 - Rental income property".

4. A page will appear on your right, entitled "T776 - Rental property identification". Complete this page. You must specify the exact date of the sale of the building, which corresponds to the end of the fiscal year of this rental property, and, once the relevant information is entered, click "Next" at the bottom of this page.

5. On the "Rental property income and expenses" page will appear on your right. Remember to check the box indicating that this is the final year of operation. Subsequently, enter the income and expenses.

6. On the "Left-side menu on the Interview tab", under "Rental Income", click on "CCA". You must choose the depreciation category that corresponds to the rental property. By clicking on the category selected, a new page is generated on the right. You must complete it properly, by making sure to indicate the date of acquisition of the property, and by entering the amount in the field for "Opening balance of the undepreciated capital cost". To do so, enter the original acquisition cost, plus the capital additions made over the years, minus the total depreciation you have taken, if applicable.

7. For "Did you dispose of an asset in this class?" -Select Yes

Enter the amount for "Proceeds of disposition of an asset", meaning the proceeds from the sale of the building as well as the "ACB of the disposition", that is, the original value plus the capital additions minus the depreciation that you have claimed over the years.

8. In the field for "Description and amount of expenses associated with the disposition of assets", enter the expenses incurred for the sale of the building.

9. In the field for "Calculate the capital gain and carry the result on Schedule 3", choose "Calculate capital gain" from the drop-down menu. If you have a capital gain, the amount minus the expenses incurred for the sale of the building will be entered by the program on federal Schedule 3 and on Quebec Schedule G.

10. You must also enter the sub-heading "CCA" choose the following Class of property "Land - non-depreciable property" located at the bottom of the page.

11. You must enter all relevant information.

 

Do not forget to specify whether you have liquidated all the assets of this category on the line provided for that purpose, in both pages that you have completed for the property as well as for the land.

 

However, federal Schedule 3, as well as Quebec Schedule G if applicable, will be generated to indicate the capital gain (or loss).

 

For more information regarding rental income, please consult the following CRA link:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/capital-cost-allowance-rental-property/determining-capital-cost-property-special-situations/selling-your-rental-property.html

 

>>CCA Building

 

>>CCA Land

 

[S Jhangiani]

Hi Geo123,

Thank you for such a good explanation on Selling my Rental Property. 

How do I calculate the ACB of the depreciation specially to get the "depreciation that I have claimed over the years" ? Does Ufile not capture that data within the software over the years? If so, can I find it and plug that number in my 2024 Return? 

[Geo123]

Hello S Jhangiani,

You are welcome.  The ACB and depreciation are different items.  ACB is the Average Cost Base ie the original cost.   Depreciation is the Capital Cost Allowance (CCA) which is calculated by UFIle, providing you had entered the original acquisition, in the year it was acquired.  You must enter the ACB while UFIle calculates the CCA.