Real Estate

Calculate ACB for capital gain: interest cost?

  • Last Updated:
  • Oct 29th, 2019 8:00 pm
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[OP]
Newbie
Feb 22, 2019
13 posts
1 upvote

Calculate ACB for capital gain: interest cost?

if i payed $$$ in mortgage interest over the years, at the time when sale the house, does the interest cost factor in acb when calculating capital gain?
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Deal Addict
Feb 19, 2019
1145 posts
1576 upvotes
Stouffville ON
Was it personal property (not principal residence), in this case the interest is a personal expense and not deductible in any way.

Investment property? precon?

You need to provide more details.
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[OP]
Newbie
Feb 22, 2019
13 posts
1 upvote
investment property. interest never deduct from rental income.
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Aug 2, 2010
15193 posts
4942 upvotes
Here 'n There
lasallian wrote: investment property. interest never deduct from rental income.
You should have done that so you need to refile every income tax return to properly account for the interest during the period of the return. You are not allowed to deduct the interest for all years on a single return.

Interest is an income item not a capital one so it can never be added to the ACB.
Last edited by eonibm on Oct 27th, 2019 10:31 am, edited 1 time in total.
Deal Addict
Feb 19, 2019
1145 posts
1576 upvotes
Stouffville ON
eonibm wrote:
Interest is an income item not a capital one so it can never be added to the ACB.
Interest can be capitalized in certain situations (does not apply in OP case).
I agree with refiling the returns in this case.
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senasena wrote: Interest can be capitalized in certain situations (does not apply in OP case).
Yes but I was referring to the OP's situation, which is that of most people renting out property. In some rare cases, such as costs relating to construction, interest can indeed be capitalized.

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