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T1
403 Capital gains
  Using keyword Own-%Share and calculation of Form TP-274, Designation of property as a principal residence |
| Program(s) affected: |
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Document created: |
03 21, 2025 |
| Tax year(s): |
2024 |
Document last modified: |
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| Version(s): |
28.10, 28.12, 28.13 |
Problem status: |
Fixed in v28.20 |
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When entering the percentage share under the keyword (Own-%Share) for disposition of principal residence, I noticed the amounts are being prorated twice on the TP-274 form. How should I correctly enter this information to avoid miscalculation of the taxable capital gain?
When completing Part 3.2 of Form TP-274 regarding the disposition of a principal residence, you should be aware that entering a percentage in the Own-%Share keyword will cause the software to prorate the amounts twice (once in column A and once in column B), which can lead to incorrect calculations of the taxable portion of any capital gain.
As a workaround:
When reporting the disposition of a principal residence, each spouse must complete the data entry in their own tax file separately by entering only their prorated portion of all amounts based on their percentage of ownership.
In doing so, the capital gain calculations are accurate as the amounts are not incorrectly prorated twice by the software.
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