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First time user of the Rental Property Income section. Need Help.


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Hi,

I'm using the rental property income section for the first time. Its a condominium apartment. Facing some challenges filling out the sections there:

1) In the Type of ownership, I own the rental property with my spouse. I put co-ownership and 50% share of ownership.

1a) In the Partners section I selected Ownership by spouse and selected Generate rental income statement for spouse and indicated 50%.

2) On the CCA section, I selected Class 1 - 4%, but here I am confused as to what does Opening balance of the undepreciated capital cost mean? Is it the price with which I bought the property?

3) I selected Partner Level (prorated) in the TO whom the CCA should be alloted section. Is that correct?

4) Confused as to what shall I put in the ACB of the depreciable capital property? and Shall I put $0.00 in the Limit to the CCA of this class?

5) Finally in my spouse return I see the Warning: The value of this field is lower than the required minimum. You have entered '-75.00' in a field that should be equal or greater than '0.00'. Click here to review your data.  But when I click here, it shows a blank page.

 

Please help resolve these issues. Thanks very much for all your help in advance.

Warning message in Ufile.docx

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Hi CHAKRAVARTYD.

1. and 1(a). Yes select co-ownership and 505, generate statement in spouse's return.

2. In the CCA schedule, Class 1, enter the ACB (Adjusted Cost Base) in the Cost of additions section. ACB will include the purchase price, legal fees, transfer taxes, finance broker fees and any other items related to the acquisition of the property. You should allocate a portion of that ACB to land and the rest to the unit. Land is not depreciable, you can not claim CCA on it.

3. You can select that if you want to allocate different amounts of CCA to each co-owner.

4. See 2 above. Don't immediately limit CCA. Take a look at the returns first then decide what is optimum. CCA if taken all gets added back as income when you sell the property later.

5. Go back and review your entries. Looks like you may have entered an erroneous amount somewhere in your spouse's return. Look to see if you entered a minus sign in front of a number by accident.

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