Hello I am filing with a spouse. So we both have to enter our net file access code or is only mine enough?

Forum|Forum|2 years ago
February 21, 2024
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GHarpe

Yes the system will ask you each your own questions pertaining to your own codes found on your Notice of Attachment. Entering the access code or not will not hinder your access to Netfile.

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LAMX580615Author

Hello, thank you for you help.

I have a second questions regarding my principle residence property. I have converted my principle residence to a rental property and know this is now a "deemed deposition" For the turbo tax page, can you let me know if the "Proceeds of deposition" is the "fair market value" and the "Adjusted Cost base" is the amount I purchased it in 2021. For the transfer, as I am renting it out, I should click "other" as I am not transferring to spouse. I have lived in my principle residence the whole time that I have owned it prior to renting it out.

Thanks for all your help.

GHarpe

As per our TurboTax article: Proceeds of Disposition

Definition of “Proceeds of Disposition”

“Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property.

As per our TurboTax article: Calculating Adjusted Cost Base (see example in article)

Adjusted Cost Base

The ACB of an asset is the price you paid to acquire it. Additionally, you can usually include capital costs such as the cost of additions or improvements and legal fees as part of an asset’s ACB. The capital costs usually have a long-lasting effect such as adding a deck attached to an existing house. Some repairs are considered capital costs if they improve the property beyond the maintenance of the original use or value such as replacing a carpeted floor with a hardwood floor. If you have to repair the property anyway, the expenses are considered current costs. If these repairs are a condition for sale or to increase the price, then the expenses are considered capital costs.

For more information please see this TurboTax article: Changing Your Principal Residence

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