Bought a house in 2006. Rented in 2014 and valued @ 227K. Sold in 2018 for $169 w $10K realtor fees. What are adjusted cost base, proceeds of disposition and outlays?

Also, do I qualify for claiming a capital loss on this?  Can i use it this year against a capital gain on the sale of mutual funds?


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Assuming you claimed the principal residence exemption on this house from 2006 to 2014, and you have documentation for the 2014 valuation of the house, you can actually claim a rental loss that can be applied against your other sources of income.  Any excess amount of loss is considered a non-capital loss that can be carried back up to 3 years or carried forward up to 20 years. 

The property should have been entered as a Class 1 asset for capital cost allowance (CCA) purposes on your rental statement (T776) in 2014.  If it was not done in 2014, you may wish to file an adjustment request with the CRA for 2014 with the proof of property valuation to establish an undepreciated capital cost (UCC) balance to carry forward to 2018.  Your 2018 TurboTax return should have a Class 1 UCC balance of $227,000 less any amount of CCA you may have already claimed since 2014. 

You would then enter a disposition for the current year, for Class 1, with total proceeds of $169,000 less $10,000 realtor fees = $159,000.  On your CCA summary in TurboTax Online, check the box next to Class 1 to indicate ‘No assets left in class’, which will trigger the terminal loss calculation.  The loss will automatically be used to offset your other income.

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