Rental income - New acquisition of depreciable propertyTo enter new acquisitions of depreciable property, please follow the steps below:
1. On the "Left-side menu on the Interview tab", select the "Rental income" option, select the subsection "CCA", and on the screen to your right choose the class applicable to the new acquisition of depreciable property that you have acquired.
2. On the page pertaining to the classes of the property identify the property at the line "Description of the asset" and enter the date of acquisition.
3. For the line "To whom the CCA should be allocated", choose the option that corresponds to your situation, from the drop-down menu to your right, usually "Business level (full amounts - 100%)".
4. For the line "Description and amount of capital additions (other than AIIP): ", enter the purchase cost of the property or the market value of the property you are using for the company`.
5. For the line "Application of half-year rule to current year additions", choose "Yes".
6. If the property in question is not subject to the half-year rule, select "No".
7. However, if you wish to limit your CCA deduction for this property, go to the line "Limit to the CCA of this class" and enter the amount of depreciation you wish to claim. If you do not wish to claim a capital cost allowance, enter $ 0.00.
The cost of additions of a category already existing will be added to column 3 of Part A.
The additions will appear on page 3 of Federal Form T776, Parts B or C, as applicable.
For more information, please consult the CRA website at the following links:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/rental-income-line-12599-gross-line-12600-net.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
For Quebec residents, you can consult the Revenu Québec website at the following links:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-100-v/
ID: 20200831110046NA.xml
Webpage: KPA320-20200831110046NA.htm