A client sold a residential rental property (single family dwelling on a residential lot) in 2024. The property has been rented since 2015 when it was changed from being used as principal residence to rental property (a formal appraisal was obtained). I don’t know if change in use was reported prop…

It’s one property and the losses offset the gains either way. Don’ make it harder than is is. No prorating required. The property should be listed on T776Asset as an asset of the rental. Enter the proceeds and expenses there and it should flow through the schedule 3. In this case, the land has the…

Allocation of proceeds should always be checked. In cases where a building (depreciable asset) is sold at a loss and associated land (capital asset) is sold at a gain, ss.13(21.1) of the Income Tax Act serves to reallocate the proceeds so that you don’t get a terminal loss and a capital gain. In th…

Must be only place in Canada where values have dropped since 2015. :face_with_diagonal_mouth:

@iain.fyffe is correct - where there is land/building you MUST allocate as between the two. They’re treated differently, given that one is depreciable property and the other non-deprecciable. There MAY be no actual difference, but there CAN be. And yes, if you’re gonna split, also split the costs. I…

Reporting Sale Proceeds of Residential Rental Property (Land and building)

Tax Topics

Arliss April 10, 2025, 8:18pm 4

Must be only place in Canada where values have dropped since 2015.

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Reporting Sale Proceeds of Residential Rental Property (Land and building)

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