2017 is the final year of my rental property and have shown the amount of proceeds on schedule 3. I have a CCA Class 8 balance of $5000, do I add this to the ACB of the property or do I claim it as a terminal loss. If a terminal loss, where do I report this?
You would claim it as a terminal loss if you sold/disposed of the property at a loss, or a recapture if you had a gain. A terminal loss would be subtracted from your rental income while a recapture would be added. Both will clear out the remaining UCC balance, if there is nothing else in the class.
If the terminal loss is more than your rental income, you can create a rental loss. If your rental loss is more than your income from other sources, your loss is considered a non-capital loss and can be carried backwards or forwards.
On the T776 you would enter it as a building disposition in Area E (line 9928 is the total). TurboTax will calculate whether it is a terminal loss or a recapture, and put the amount in line 9948 or 9947.