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Capital Additions Amounts vs ACB


Moomin
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Hello,

Looking for some clarification/advice on CCA please.  My spouse and I bought our first rental property last year.

1. I've recorded the building ($200k) and associated acquisition costs ($3k) in the "Description and amount of capital additions".  Do I also have to enter the same amount ($203k) in the "ACB of the depreciable capital property in this class" field? In the case of new additions, wouldn't be ACB always be the same amount?

2.  If it's a 50% co-ownership, is it possible for only one person (the higher income earner) to claim CCA?

Many thanks in advance!

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Hello Moomin. Yes you enter the $203k amount as the ACB. The ACB will get updated each time you include amounts in the additions area. That amount will eventually be used to determine any capital gain and CCA recapture when you dispose of the property. Make sure you allocate the purchase ACB between the building and the land. The land portion can not be used for CCA claims. If the building is owned 50% each owner can claim their respective share of the CCA each year. 

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