Enter the details of your current-year dispositions on your form, as explained below.

If you disposed of depreciable property during your current tax year, you should:

• complete, for each class, areas D and E, if applicable
• enter in column 5 of the calculation table in area A the amounts for each class from column 5 of areas D and E

When completing the tables in areas D and E, enter in column 3 – Cost of additions in the year whichever amount is the lesser of either:

• your proceeds of disposition minus any related expenses
  
• the capital cost of your rental property

Your proceeds of disposition could include compensation you receive for rental property that has been destroyed, expropriated, or stolen. Special rules may apply if you dispose of a building for less than both its undepreciated capital cost (UCC) and your capital cost. If this is the case, go to Disposing of a building.

If you sell a rental property for more than its cost, you may have a capital gain. You may be able to postpone or defer the capital gain or recapture of CCA in your income.

Forms and publications

• Guide T4036, Rental Income
• Form T776, Statement of Real Estate Rentals
• Income Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance

Related links

• Area D – Equipment dispositions in the year
  
• Area E – Building dispositions in the year
  
• Line 9947 – Recaptured capital cost allowance
• Replacement property
• Selling your rental property