Client had their house taken due to insolvency. It was not sold. Do I report it on Schedule 3 as disposed? I think i would for the value that it was deemed worth on the debt schedule?
Thanks in advance for your input.
@rosanna
Are you asking what to put for “Proceeds of disposition”? Assuming this was a principal residence, it shoudn’t really matter unless some portion of it was not eligible for the PRE. I agree with you - the most reasonable value for POD is the mortgage balance owing (including any penalties, etc). However, I would first ask whether your client intends to fight the bank for it. If they expect to get the house back, then obviously it should not be reported as “disposed”.
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