Capital expenses on rental property income
If you have made repairs to your rental property, you must
determine whether it is a capital or current expense.
We invite you to consult the CRA guide T4036 at the following
link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
If you have determined that this is a capital expenditure, please
follow these steps:
1. On the "Left-side menu on the Interview
tab", select the heading "Rental property
income".
2. On this section, go to the sub-section entitled
"CCA", which already contains the information on
your building.
3. On the line for "Description and amount of capital
additions", in the first field, enter the description of
the item, then enter the amount of it.
4. On the line for "Application of the half-year rule to
the current year's additions", select the option that
corresponds to the situation.
5. If you do not wish to claim the CCA for this expense, go to
the line "Limit to the CCA of this class" and
enter $ 0.00, otherwise enter the amount of CCA you wish to claim
that is subjected to the deduction maximum allowable.
This expense will be carried over by the program on page 3 of
Form T776, specifically in Area C of this form,
and the amount will be added in column 3 of Area A.
ID: 20191024163835NIX.xml
Webpage: KPA320-20191024163835NI.htm
