According to Canada Revenue Agency, When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it.
You will have a deemed disposition at Fair Market Value (FMV) at the time of change in use of the asset, as a sale back to yourself.
The software will calculate a Recapture - Proceeds (FMV) greater than the Undepreciated Capital Cost (UCC), which will be added back to business / property income. Or a Terminal Loss - Proceeds less than the Undepreciated Capital Cost (UCC), which is substracted from the business/ property income.
Thank You for chossing TurboTax.
