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Level 1
posted Oct 1, 2024 3:03:30 PM

Selling rental property - Capital gain calculation

I have two questions about calculating capital gain for the selling of rental property:

 

1. I paid CMHC mortgage loan insurance when I bought the property (10 years ago), but did not expense it. Can I include the CMHC mortgage loan insurance as part of the Adjusted Cost Base (ACB)?

 

2. Can I include the mortgage cancellation penalty/interest (3 months) as part of the "Outlays and Expenses"?

0 1 7801
1 Replies
Moderator
Oct 9, 2024 12:37:04 PM

Yes, you can include the cost to cancel the mortgage as part of the "Outlays and Expenses". 

 

As for the CMHC mortgage loan insurance, we would recommend contacting the Canada Revenue Agency (CRA) and consulting with them on how you should put that on your return. If you are in Canada, you can call them at 1-800-959-8281. This CRA page has info on other ways to contact them: https://www.canada.ca/en/revenue-agency/corporate/contact-information.html