# Schedule 3 Real Estate outlays and expensesn VS T776 Rental Expenses



## Linebacker (Feb 28, 2014)

Hello again. Could someone explain where I would claim lawyer and survey fees for the disposition of a rental?
It seems I would claim it in the Schedule 3 as the fees were incurred for the sale of the rental unit. However, form T776 also has
a line # where I could claim lawyer and other professional fees. The difference? I get a larger return when I claim the amount in T776 (~$400).
Do I have a choice, or must I claim it in Schedule 3 (where CRA gets more of my money).


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## AMABILE (Apr 3, 2009)

on schedule 3 , you enter rental income and your expenses
for disposition of the property, use the capital gains / losses  section
enter date and purchase price of property
enter date and sale price of property
there is a line to enter your "*CAPITAL EXPENSES *"


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## stardancer (Apr 26, 2009)

Schedule 3- lawyers and other fees when purchasing the place get added to the adjusted cost base; such fees when selling get deducted from the proceeds; both make up part of the resulting capital gain/loss

T776- these particular fees refer to any lawyer's or other professional fees you pay to earn rental income, such as small claims court, fees for eviction consultation, fees for renovation consultations, etc


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## AMABILE (Apr 3, 2009)

thanks stardancer.......my rental property closes march 31, 2014
i have no rental income january to march
where do i enter utilities, taxes ,etc for this period ?


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## stardancer (Apr 26, 2009)

on T776, rental form


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