Column 4 - Proceeds of dispositions in the year

If you disposed of depreciable property in the current tax year, you should:

• complete, for each class, Part D and Part E on Form T776, Statement of Real Estate Rentals, if applicable; and
• enter in column 4 of Part A the amounts for each class from Column 5 - UCC after additions and dispositions of parts D and E.

When completing parts D and E, enter in Column 3 - Cost of additions in the year whichever amount is less:

• your proceeds of disposition minus any related expenses; or
• 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, see Disposing of your rental property for details.

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 including a 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 topics

• Disposing of a building
• Line 9947 - Recaptured capital cost allowance
• Replacement property
• Selling your rental property

Date modified:

2017-03-16