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Level 1
posted Mar 15, 2023 1:26:03 PM

How do I determine the adjusted cost base and the total proceeds of disposition from the sale of my principal residence

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1 Best answer
Level 4
Mar 15, 2023 2:26:24 PM

The Adjusted Cost Base (ACB) is the cost of property + any expenses to acquire it, such as commissions and legal fees. The ACB can also include capital expenditures to the property, like the Cost of additions and improvements to the property. Note: You cannot add current expenses like maintenance or repairs to the ACB.

Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property. Even if you don’t have a capital gain or loss, you still have to report the proceeds of disposition every time you sell the capital property. 

Subtract the adjusted cost base and the selling expenses from the proceeds of disposition. A positive number indicates a gain, while a negative number indicates a loss. 

For more guidance, please see the following TurboTax articles;

Calculating Adjusted Cost Base.

Proceeds of Disposition.

How to Calculate Capital Gain or Loss.

Where do I report capital gains or losses in TurboTax Online?

How do I report the Sale of my Home(principal residence)?

 

Thank you for choosing TurboTax.

 

5 Replies
Level 4
Mar 15, 2023 2:26:24 PM

The Adjusted Cost Base (ACB) is the cost of property + any expenses to acquire it, such as commissions and legal fees. The ACB can also include capital expenditures to the property, like the Cost of additions and improvements to the property. Note: You cannot add current expenses like maintenance or repairs to the ACB.

Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property. Even if you don’t have a capital gain or loss, you still have to report the proceeds of disposition every time you sell the capital property. 

Subtract the adjusted cost base and the selling expenses from the proceeds of disposition. A positive number indicates a gain, while a negative number indicates a loss. 

For more guidance, please see the following TurboTax articles;

Calculating Adjusted Cost Base.

Proceeds of Disposition.

How to Calculate Capital Gain or Loss.

Where do I report capital gains or losses in TurboTax Online?

How do I report the Sale of my Home(principal residence)?

 

Thank you for choosing TurboTax.

 

New Member
Mar 24, 2024 3:29:24 PM

My new home cost more than my old home. How do I report a negative in proceeds of disposition. It won’t let me do that on the program?

Moderator
Mar 24, 2024 4:03:46 PM

@Themdragons If you have sold your principal residence, then that is all you need to report. There is no requirement to report the purchase of a new home, until you sell it later or it stops being your principal residence.

New Member
Apr 5, 2024 9:33:16 PM

Is the proceeds of disposition the gain on the property sold? 

Ex. Sold principal residence for $500,000. However, had to re-pay loan, etc. bought house for $367,000 5 years ago. is the proceeds of disposition what we MADE? so $133,000? 

Moderator
Apr 6, 2024 10:17:10 AM

@naroon 

The proceeds of disposition is what you received when you sold the property, not just the gain. Generally you don't have a gain or a loss when you sell a principal residence, but if you do, TurboTax will automatically calculate it it based on the info that you enter in the principal residence section.