Hi kristy008,
I hope you're having a great day.
1. If you claimed Capital Cost Allowance (CCA) on the rental property on form T776 in past years you would need to:
a) Enter the sale of the property on form T776. You would potentially have a recapture up to the amount of the original adjusted cost base (ACB) of the property.
b) You would then need to enter your sale price (less expenses) and your original ACB on Schedule 3 to the claim a capital gain on the remainder of the transaction.
For example, if your property originally cost you 100,000$ and you claimed CCA for 20,000$ (hence your undepreciated capital cost (UCC) would be 80,000$) for which you sold for 160,000$ then:
You would indicate a proceed of distribution of 100,000$ on T776 and you would have a recapture of 20,000$ (100,000$ less UCC of 80,000).
You would then show on Schedule 3 a sale of 160,000$ less an ACB of 100,000$ to calculate you capital gain.
2. If you never claimed CCA on your property, you would include your cost and sales price on Schedule 3.
Don't forget to use the foreign exchange rates at the time of purchase and at the time of sale.
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