So, I set my house proceeds to be $100 and my ACB to be $100, so property bought and sold for the same value (zero capital gains). Then I said I lived in the house for 1 year and owned it for 10 (so, a rental for 9 years). It spit out that I had a capital gain of $40. So, for a house that didn't go up in value at all for 10 years, TurboTax is assigning 40% of the sale price as capital gains. If you change the number of years the house was a rental, the % of capital gains it assigns goes down until you hit 9 years personal property and 1 year rental, when it assigns zero capital gains. I don't get it.
