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New Member
posted Jan 4, 2023 7:01:22 AM

Calculating capital gain/loss from disposition of property

I have sold my second property and would like to know if I can claim the below mortgage expenses to calculate the capital gain/loss.

 

1 - Mortgage Interest ( from June - August)

2 - Mortgage Penalty (3 Months Bonus Interest)

3 - Mortgage (Discharge Administration Fee)

4 - Mortgage (Statement Fee)

5 - Mortgage (Reinvestment Fee)

 

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1 Replies
Intuit Alumni
Jan 4, 2023 9:47:46 AM

To calculate your capital gain or loss, subtract the total of your property's ACB , and any outlays and expenses incurred to sell your property, from the proceeds of disposition

As per the Canada Revenue Agency (CRA) link: Outlays and expenses
Amounts that you incurred to sell a capital property. You can deduct outlays and expenses from your proceeds of disposition when calculating your capital gain or loss. You cannot reduce your other income by claiming a deduction for these outlays and expenses. These types of expenses include fixing-up expenses, finders' fees, commissions, brokers' fees, surveyors' fees, legal fees, transfer taxes, and advertising costs.

For more information please contact the CRA at 1-800-959-8281.

 

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