I read through many forum postings, none give a clear answer to my questions. Maybe one of the Pros can help..
I bought a Duplex in 2016. I claimed expenses for the rental portions over the years, but never claimed depreciation. In 2021 did $70K renovations. I need to add this $70K to value of house (I believe Class-1 4%). I never entered/filled any CCA form for this house.
What I did.
On LHS click "Rental Property income > CCA". On RHS click "Class-1 4%". I put these numbers:
a) Value house (without the land) in "Opening balance UCC" = Say $500K
b) "To who should be allocated" = I put 'Business 100%'
c) "Portion of CCA used for business" = I put 50% (other 50% is personal use)
d) Purchase date = 09-09-2016
Amount renovations: $40K general (eg. outside, etc..) so the 50% business portion applies. But $30K is solely for rental unit (so should be 100% business portion). So officially, increase in value of house should be $40K*50% + $30K = $50K
Q?
1) Is ACB same as (a) above "Opening balance", ie. $500K (since never claimed any additions, nor depreciations for this house) + legal costs ?
2) In "Description Capital Addition", how do I enter amounts of my renos, so that $40K is under 50% use, and $30K is 100% use?
Do I simply "double-up" the $30K, so I enter 40+2*30 = $100K, so that when Ufile software does calculation of 50% portion, it comes out to $50K (which is correct amount)?
OR do I need to do multiple entries in "Class-1 4%"? If so, what do I enter in "Opening bal", ... for each entry?
3) "ACB of depreciable Capital Property" - do I need to fill this manually. Its not automatically calculated?
4) Next year 2022, I will have more major reno, say $40K. When I enter this amount in "Class-1" for 2022, must I manually enter all the values again ie. Opening balance, ACB...?
Or will Ufile carry-over the info and calculate these automatically?
And will new "Opening balance" in 2022 be $500K + my additions ($50K) = $550K ?
Thank You
