Selling your rental property

If you sell a rental property for more than it cost, you may have a capital gain.

List the dispositions of all your rental properties on Schedule 3, Capital Gains (or Losses). For more information on how to calculate your taxable capital gain, see Guide T4037, Capital Gains.

Note

If you owned the property for less than 365 consecutive days before the disposition, you may have a flipped property.

If you are a partner in a partnership that has a capital gain, the partnership will allocate part of that gain to you. The gain will show on the partnership's financial statements or in box 151 of your Slip T5013, Statement of Partnership Income. Report the gain at line 17400Footnote 1  of Schedule 3.

Note

You cannot have a capital loss when you sell depreciable property. However, you can have a terminal loss. For more information, go to Column 7 – UCC after additions and dispositions.

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