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posted Apr 15, 2021 4:29:50 AM

I sold a rental property last year, this property i have invested with 3 of my friends. what is the type of capital property disposed of

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Level 5
Apr 17, 2021 10:15:50 AM

If you are selling a rental property, enter your Capital Gain on the Disposal under Real Estate property. 

Also, you mentioned that you invested with your friends, do not forget that you would have to input your gained share portion from the disposal of rental property in your tax return. To calculate your portion of gains on a property with multiple owners, you would need to determine the percentages that are owned and determine what part of the capital gains are your own.

 

For example, if you owned 1/3 of the property valued at $150,000, you would need to determine the capital gain on this amount and claim 1/3.

 

To calculate your shared portion, please follow this formula:

 Adjusted Cost Base(ACB) minus Proceeds of Disposition minus Outlays & Expenses.

 

For more details please follow the link Selling your rental property 

 

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