Tax qn (rental property sale)

[Olao32]

Hi guys, I have a tax question for you regarding rental properties. Figured someone must have gone through this in the past. And yes, I know I can PM so and so (that will be my next step if this doesn't work)...but figured this may be useful for anyone else in this situation.

I'll keep it pretty simple. I sold a rental property in the period for less than both it's cost and UCC, thus creating a terminal loss in the period for tax purposes. I am unsure of the deductibility of this loss, and thus the question.

Is this loss determined a capital loss, and thus only deducible against future or current capital gains at 50%?
Or, can I deduct other forms of income against this loss? etc.

I searched on the internet for this but couldn't find much information in this instance, only in the instance of capital gains.

Thanks!

[squiggs96]

As with everything regarding taxes, talk with an accountant who deals with your specific scenario. Yes, most of us charge money, but it's usually money well spent.

That being said, generally it goes on form T776, line 9948.

[Calgary14]

Terminal loss is separate from a capital loss but can be deducted against the rental income. Capital loss I'm sure you know already - diff between ACB and proceeds less selling costs. And FYI make sure you have all your documentation as a terminal loss sometimes gets red flagged. I've seen three CRA audits result from a terminal loss. Any other questions feel free to PM me