I sold a property in 2024. Where do I enter this information?

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If you sold a property in 2024 and need to report this on your Canadian tax return using TurboTax, you’ll be dealing with capital gains or losses. Reporting the sale involves a few steps to ensure it's done correctly. Here is how you can enter this information in TurboTax Canada:

Step 1: Determine the Type of Property

First, identify what type of property was sold:

• Personal Use Property (such as your home)
• Rental Property
• Business Property

The type of property affects how the sale is reported, especially in terms of exemptions and available deductions.

Step 2: Collect Necessary Documentation

Gather all documentation related to the sale, including:

• Purchase and Sale Agreements
• Closing Statements
• Cost Information (to determine the Adjusted Cost Base or ACB)
• Expenses related to selling the property (e.g., legal fees, real estate commission)

Step 3: Access TurboTax

Log in to your TurboTax account. Make sure you are using a version of TurboTax that supports reporting capital gains from real estate, such as TurboTax Premier or Home & Business.

Step 4: Navigate to the Income Section

1. Open or Start Your Return: Begin working on your tax return.
2. Income Tab: Click on the Income tab or search for the section where you can report income.

Step 5: Enter Property Sale Details

• Capital Gains (or Losses): Look for a section specifically dedicated to capital gains. In TurboTax, this might be found under “Income & Expenses” and then possibly under “Investments.”
• T5008 Slip: If you received a T5008 slip reporting the proceeds of disposition, enter this form into TurboTax as prompted.
• Schedule 3: If no T5008 slip, you will manually enter the necessary information on Schedule 3, which is used for reporting capital gains or losses in Canada. Input details such as:
  • Description of Property
  • Year of Acquisition
  • Proceeds of Disposition
  • Adjusted Cost Base (ACB)
  • Expenses of Sale
  • Gain or Loss Calculation

Step 6: Principal Residence Exemption

If the property was your principal residence, you might qualify for the Principal Residence Exemption (PRE) which can reduce or eliminate capital gains tax:

• Designate the Property: During the process in TurboTax, specify the years the property was your principal residence.
• Exemption Calculation: TurboTax will guide you through applying the PRE if applicable.

Step 7: Double-check Entries

Review all the information you’ve entered to ensure accuracy. This includes double-checking numbers, dates, and calculations. TurboTax also offers a review feature to help catch common errors.

Step 8: Finish and File

Complete the rest of your tax return. TurboTax will integrate the results from the Schedule 3 into your return, impacting your overall tax calculation. Proceed to file your tax return once complete.

Additional Tips:

• Keep Records: Maintain copies of all documentation related to the property sale for at least six years, as required by the CRA in case of an audit.
• Consider Professional Advice: If you’re unsure about any part of reporting the property sale, especially if it involves significant amounts or complex situations, consulting with a tax professional may be beneficial.

By following these steps, you should be able to accurately report the sale of your property in TurboTax Canada and ensure compliance with Canadian tax laws.