LiseL

I am doing a return that includes 3 rental properties. In the past, the taxpayer leased a vehicle so there was no depreciation. In April 2021, she bought out the lease of the same vehicle. So I entered the expenses and mileage for the vehicle when it was leased under each property. I then added a purchased vehicle under each property that included the same name and registration as it was the same vehicle, except now it was owned instead of being leased. I entered the expenses and appropriate mileage for each property. Everything is OK for the motor vehicle expenses under each property, the problem is that the CCA is only calculated for the last property on the list. The other 2 properties have CCA of $0.00. The information I entered for each vehicle is identical except for different mileage used for business amounts (2 properties at 35% of the business mileage, 1 property at 30% of the business mileage for the year). I've used Ufile for 20 years and can usually figure out a work-around but I am at my wit's end trying to figure this out. Is this a bug in the software? Isn't each rental property's CCA considered a separate entity? Why is Ufile calculating the vehicle expenses correctly based on the mileage but only calculating the vehicle CCA on the last property? I don't know if anyone will answer this. I suspect I may have to call Ufile this week.

I do a friend's taxes who owns 4 rental properties. The deduction is based on the mileage used for business compared to total mileage driven for the year. So first, you need to know the mileage on the vehicle on 01-01-2021 and then again on 31-12-2021. This will give you the total kilometers driven. I told my friend to track the mileage for personal use instead of tracking the mileage for each property and/or personal. Once she provides me with the total kilometres driven, total personal use kilometers, I subtract the personal use mileage from the total mileage. Then I divide the amount remaining by 4 because she has 4 properties. I then enter the total kilometers driven and the amount (25% of remaining) used for business under each property. You enter 100% of the expenses under each property as Ufile will calculate the percentage of vehicle expenses for each property based on the mileage you entered for each one. One last note: if you change vehicles during the year, then you need to enter the info for each vehicle separately so you'll need to ensure you keep track of the expenses and mileage for each vehicle.

Because this is a shared property, you should select the option "Partner level (Pro-rated amounts)" instead of Business level. Enter the percentage appropriate for each owner. Then on your daughter's return, limit her CCA to $0.00. If the amount remaining for the undepreciated value of the property doesn't match what you actually claimed, then next year, you'll need to amend the opening balance to the correct amount (current value - $9900 deducted in 2021).

If you purchased the property during 2021, then in the Identification section of the property, you have to check the box "first year of operation", then enter the date you purchased the property as the start date of the fiscal year, enter 31-12-2021 as the end date. If you don't check that box, then you'll get that error.

Yes, the software will split it by the percentage you enter, in your case, you would enter 50% under each person.

I'm a longtime user of Ufile (20 years) and a former programmer. Yes, you have to enter all of the total rental income and expense detail under both spouses and specify 50% ownership for both. If they each have a vehicle and both use it to maintain their property, then they would each have to enter the vehicle expenses specific to their vehicle and each enter the total mileage driven in the year and the mileage used for business in that year. This also applies if a business has more than one owner. Each owner has to enter the total income/expenses and specify their share of the business. The only type of income that Ufile does split automatically is pension income..