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Building addition from previous years (CCA)


CamD
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Hi, I own a couple rental properties that I purchased a few years ago.  I never input them as building additions for CCA purposes.  Can I add them in this year as building additions, subject to the 1/2 year rule? Or do I have to go back and re file my old returns and add them on the purchase year? Thank you!

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Hi CamD, you can enter the ACB for the purchase as an opening UCC in the 1st column. The 1/2 year rule would not apply. If you get a call from CRA it's a simple explanation. Alternatively you can enter it as a new acquisition and select for the half year rule not to be applied. You need to separate the land portion from the building portion and you need to allocate the costs to acquire the property proportionately to the land and the building. Those costs are legal, survey, transfer tax, building inspection, CMHC fees, mortgage fees, etc. They are acquisition costs not expenses.

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