The software calculates the Capital Gain but I do not understand how to remove/reduce the CCA claimed over the years we have had the property.
When disposing of Rental Property (Investment) there are a number of steps to correctly report the transaction to Canada Revenue.
You will need to access the rental schedule under the "Income" tab > "Rental Property" providing details of the address for the property and ownership type. Also include the date that the property was sold.
Then continue to the "Rental Profile" you will complete the sections as in previous years for income and expenses. Included in the year of sale will be information for "Bought/Sold Equipment, property, buildings or land", (this will only be relevant if you have claimed or set up CCA amounts in prior years and have remaining UCC balances to clear. If you have not claimed CCA in prior years or have opening UCC then this section is not required. (This is very important and requires review of prior years tax returns.)
The second area of the tax return that requires reporting of this disposition is for Capital Gains/Losses. Find this screen under "Income" > "Investments" > "Capital Gains and...", place a check mark in the first box "Sold stocks, bonds, real estate,..." and continue.
In the Capital Gains screen you will indicate the type of investment sold as "Real Estate/depreciable property" and then input the required information for your transaction.
When disposing of Rental Property (Investment) there are a number of steps to correctly report the transaction to Canada Revenue.
You will need to access the rental schedule under the "Income" tab > "Rental Property" providing details of the address for the property and ownership type. Also include the date that the property was sold.
Then continue to the "Rental Profile" you will complete the sections as in previous years for income and expenses. Included in the year of sale will be information for "Bought/Sold Equipment, property, buildings or land", (this will only be relevant if you have claimed or set up CCA amounts in prior years and have remaining UCC balances to clear. If you have not claimed CCA in prior years or have opening UCC then this section is not required. (This is very important and requires review of prior years tax returns.)
The second area of the tax return that requires reporting of this disposition is for Capital Gains/Losses. Find this screen under "Income" > "Investments" > "Capital Gains and...", place a check mark in the first box "Sold stocks, bonds, real estate,..." and continue.
In the Capital Gains screen you will indicate the type of investment sold as "Real Estate/depreciable property" and then input the required information for your transaction.
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