Schedule 6 - capital gain on real estates

How do I complete the schedule 6 to record the capital gain on the (commercial) real estate property?

The total POD has been allocated according to subsection 13(21.1) between (depreciable) building and (non-depreciable) land components, which has elimimated the terminal loss on the building.

There will be neither a capital gain or loss nor a terminal loss or recapture on the building portilon as per above.
(I've shown this in the Schedule 8)
However, there is a capital gain on the land portion.

Should I list both the land and building portions on the schedule 6, showing the POD and ACB info for both to show the whole property or only show the land portion which triggered the capital gain?

I'm inclinded to show them both on the schedule.
I could override the (apparent) loss on the building to be zero to be correct, and claim the (entire) selling expenses on the capital gain on the land.

This way, the complete infomation is shown on the schedule.

Can anyone advise if this will acceptable?

First time user.

Answer

3 people found this helpful

As the moderator has pointed out, this may not be the correct place to ask your question because I think there are some issues as to how you are allocating the proceeds of disposition to the land and the building.  First, I think think you need to show the land and building separately on schedule 6.  What I'm not clear on is how the value of the land has increased, and therefore a capital gain, but the value of the building is being sold at exactly the undepreciated capital cost?   I would suggest that this might be a convenient way to change recaptured depreciation into a capital gain and if this is the case you could have a problem with Canada Revenue. That is just food for thought.
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