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).

If you are a member of 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 70 of your Slip T5013, Statement of Partnership Income, or Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses. Report the gain at line 174 of Schedule 3.

Note
You cannot have a capital loss when you sell depreciable property. However, you may have a terminal loss. For more information, see Column 5: UCC after additions and dispositions.

Forms and publications

• Guide T4036, Rental Income
• Guide T4037, Capital Gains
• Schedule 3, Capital Gains (or Losses)
• Form T776, Statement of Real Estate Rentals
• Slip T5013, Statement of Partnership Income
• Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses

Related topics

• Column 5: UCC after additions and dispositions
• Line 127 - Capital gains
• Line 9948 - Terminal loss
• Ownership