foreign rental income capital cost allowance

[Sarahlee]

Hi.

I want to claim CCA on foreign rental property.

If I add CCA as a deduction item, do I only need to enter from t776? Should I add it in other menus? 

Please tell me how to insert CCA

Thanks.

[TheTaxSmith]

You need to setup the CCA class first in the rental area then decide how much CCA you want to take. It does not get entered anywhere else.

[Sarahlee]

I bought the house in 2003 and moved to Canada after living there. I think the house is class 1 when I read the CRA article. How do I decide cca class?

 

[TheTaxSmith]

Hello again Sarahlee

Class 1 as per the guide   https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html

Also you need to determine the value of the land separate from the building. You can only claim CCA on the building portion.

[Sarahlee]

Thank you for your quick reply.

(for class 1) Should I claim 4% of the building value with CCA from T776? Is it not necessary to insert building value or accumulated CCA?  

[TheTaxSmith]

Sarahlee. You need to enter the cost of acquisition of the building into the schedule and let the software determine the CCA to be taken. Open up a Class 1 CCA schedule and complete the data entry.