Rental property sale SmartFile

You sold a rental property. This SmartFile works out the capital gain and the depreciation that comes back into income, estimates the tax, and gives you the exact numbers for your return.

What it does

1. Splits land and building at purchase and at sale, because only the building was ever depreciable.
2. Works out recaptured CCA (or a terminal loss) from the depreciation you claimed over the years.
3. Calculates the capital gain on the land and the building, for your share if you owned it with someone.
4. Estimates the extra tax on top of your other income, so you know how much to set aside.
5. Gives you the lines: T776 lines 9947 and 9948, and Schedule 3 Part 3 lines 13599 and 13800, on a printable worksheet.

Good to know

• Owned it less than 365 days? The flipping rule can make the profit fully taxable business income. SmartFile flags it.
• If you ever lived in it, part of the gain may be tax-free, and moving in or out may have counted as a sale. SmartFile tells you when that needs a closer look.
• Selling a used residential rental is normally exempt from GST/HST.