How do i calculate the proceeds of disposition on the sale of my primary residence?

Using the formula, Proceeds of disposition - (adjusted cost base + outlays and expenses), determines whether you have a capital gain or loss, the proceeds of disposition are the amount of money you received for the property, the adjusted cost base is what it cost you to buy the property, and outlays and expenses are the cost for selling the property such as legal fees.

• If you sell the capital property for more than you paid for it, the resulting portion added to your net income is a capital gain.
• If you sell the capital property for less than you paid for it, you may have a capital loss. You can use this loss to reduce any capital gains you had in the year all the way down to zero if you have enough loss.

Income tax form-wise, all of your capital gains and/or losses are calculated and reported on Schedule 3, Capital gains or losses. Complete Schedule 3 to determine what you need to report.

 

For more information about Proceeds of Disposition and completing Schedule 3, see the links below: 

Proceeds of Disposition 

Completing Schedule 3 

Lets say I bought my house 5 years ago for 350000 and sold it this year for 500000. is the proceeds of disposition 150000? or is it 500000 because that is what I sold my house for? (mortgage owing back as well)

Thank you!