Rental income - New acquisition of depreciable
property
To 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/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/96-to-164-total-income/line-136/
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-100-v/
ID: 20200831110046NA.xml
Webpage: KPA320-20200831110046NA.htm
