When you purchase property to give it for rent, it would not be considered a principal residence. The sale of this kind of property would be considered a capital gain if it is sold at more than the purchase price, or a capital loss if sold at less than the purchase price.
Yes, when you purchased this property, you should have declared it at its purchase price in your 2016 tax file when you purchased it.
However, when you sell it you have to declare the selling price so that capital gain can be taxed properly.
To record the sale of the investment property in TurboTax online, you should follow the steps given below: -
- First of all, click on the "Find" (Magnifying Glass) option in TurboTax Online.
- Type "Capital Gain", and click on "GO"
- Then, select "Sold stocks, bonds, real estate, other capital property, or sold qualified small business corporation shares and/or qualified farm property and you have a capital gain or loss to report", and click on "Continue"
- On the next page fill out all the information about the sale of investment property and click on "Done"
- Click on "Done" one more time on the next page.
- Now, select "Done with interest and other investment income"
For more information about the sale of investments please visit this page: - Selling your rental property (Canada Revenue Agency)
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