Record a property sale

Record the sale of a property. Wealtharu computes the realized capital gain, discharges the mortgage, and keeps the property as a permanent record.

Before you start

• This is tooling, not tax advice. We compute the capital gain only. Capital cost allowance (CCA) recapture or terminal loss on a sale is not computed. Confirm anything important with an accountant.
• A property can only be sold once its tenancy is fully wound down (move-out done and the deposit settled). End the tenancy first if a lease is still active.
• Recording a sale posts to your books and marks the property sold. It is kept as a closed record. To undo a sale recorded by mistake, use Reverse this sale.

Steps

1. Open the property and go to the Sale tab (under Money).
2. Enter the sale price (the gross amount the buyer paid).
3. Enter your outlays and selling costs. This is real estate commission, legal fees, staging, and any mortgage prepayment penalty. These reduce the capital gain.
4. Pick the sale date.
5. Confirm the purchase price for the cost base. It is pre-filled if you recorded it on the property. Any capital improvements you logged are added automatically. If no purchase price is recorded, you can enter one here.
6. If the property has a mortgage, confirm the mortgage payoff from your discharge statement (it is pre-filled from the amortization estimate).
7. Select Record the sale.

What happens

• The property is marked sold and moves out of your active list, with its full money history kept.
• The realized capital gain is computed (sale price − cost base − selling costs) and appears under Capital gains & PRE → Realized sales (Schedule 3).
• Your net worth drops by the property's equity, and the gain is recorded in your books.
• The mortgage is marked discharged.

If the gain shows "not computable"

If no purchase price is recorded, we cannot compute the capital gain, and we never show a made-up number. The sale is still recorded. Add the property's purchase price to compute the gain.

If you manage a team

If you are a restricted manager, a sale you record waits for an approver to sign off before it posts. Until then the property stays active.

Related

• Estimate a sale before you make it: Estimate capital gains and the principal-residence exemption.
• Designate principal-residence years to lower the gain on your home or cottage.

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