2019 selling of house

[KellyD 0]

If someone sells their house to move in to another house,  is it required to report the sale of a house if it is not a rental.

[Nawal 3]

Hi KellyD, yes it is. To report the sale of your principal residence, please follow the steps below:

1. In 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 2018?". 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.

 

[DennisC 0]

This is not working for me. The program keeps blanking out the information entered on the Personal Use Property screen. It then shows error messages indicating information is required.

[Nawal 3]

Hi DennisC, we suggest you to contact our support team at support@ufile.ca .

[Anabela 0]

I do the taxes for my in-laws who are elderly and on a pension. This info is extremely helpful however, I would also like to add that in 2019

they sold their Personal Use home Cottage to downsize to a condo. I followed the steps above and it worked well, but I also would like to ask for any expenses paid or split with new buyers example: municipal tax and school taxes, is that added as just other deductions? 

If they received proceeds on the sale, will the sale of the house effect their pension compensation? 

Thank you so much for your support

[Hank 0]

I can follow the steps that @Nawal mentioned, but I cannot figure out the last step. There is no line for "Change in use of property and election" and no section 284 or 286.1. Is this line supposed to be under Real estate, depreciable property, and other properties?

[Nawal 3]

Hi Hank, the last step in only visible to the Ufile PRO users. It's ok if you don't see it.