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Returning Member
posted Jan 13, 2022 10:07:27 AM

How to claim principal residence for cottage property

We have had No principal residence since 2010. claimed RENT on taxes

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3 Replies
Level 6
Jan 14, 2022 6:41:01 AM

Please see this TurboTax FAQ to learn how you can report the sale of your Principal Residence: How do I report the sale of my home (principal residence)?

 

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.

 

Thank you for using TurboTax.

Returning Member
Jan 16, 2022 5:10:25 AM

Hi--I am not selling, the cottage will be passed on to my siblings at No cost. I want to pay my Cap Gain before change of ownership. Thanks

 

Moderator
Jan 19, 2022 9:41:25 AM

When you started renting out the property and it was no longer your principal residence, you had a “deemed disposition”. Then you had another deemed disposition when you gave the property to your siblings. Even though you didn’t actually sell anything, for tax purposes it's treated like you sold your home, bought it back immediately as a rental, and then sold it to your siblings. So, the same forms are used even though no money actually changed hands.

 

This Canada Revenue Agency (CRA) page has more information on reporting the sale (or deemed disposition) of your principal residence: Reporting the sale of your principal residence for individuals (other than trusts)

 

This TurboTax FAQ has more information on entering capital gains: Where do I report capital gains or losses in TurboTax Online?