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Capital Cost Allowance not working properly?


murray18346

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Form T776 E:  Total CCA Claim for the year - the amount does not transfer properly to box 9936 of Part 4.  I have a Class 8 CCA from previous years.  I added a separate (or new) Class 8 line for the current year - all the information calculates correctly in Area A (Calculation of CCA claim), however the total of Column 12 does not transfer to box 9936 - only the amount of the CCA from the previous year gets transferred to box 9936.

Next, i tried just adding to the original CCA, but got the same results.

Is this an error in the program or am i doing something wrong?

T776E.pdf

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Hi murray18346. The current year addition of $198 should be added to col 3 on the same line as the opening UCC. This would correctly calculate for the 1/2 year rule.

That said you need to look at the initial info entered to schedule T776E to make sure you have the correct percentage of partnership or ownership recorded. Based on the calculation for CCA it appears you are only claiming 3% of the total allowable CCA.

Another situation that may be at play would be more than one rental property. If that is the case and the other property has CCA claimed then the schedule you have provided may show the maximum CCA claim to bring total net rental income from all properties to zero. You can't have a loss by using CCA for rental properties. CCA can only be claimed in an amount that produces a zero rental net income.

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