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How 2 owners claim CCA but 1 owner does not claim CCA for a 3 owner rental property


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Hi, 

My husband, my daughter and I own 25%: 45%: 30% ownership of a condo property. In each person's return, add the other 2 to "Partners" and fill in the ownership percentage accordingly. My husband and I want to claim CCA, but my daughter does not want to claim since she did not earn much in 2021. In terms of " income and expenses" of CCA, the total amount of rental income and expenses is included on everyone's return. In my husband's and my return, CCA (building) is added and "business level(full amount - 100%) is selected as shown below. In my daughter's return, CCA is not added. My daughter is filing a separate tax return.

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A total of $18000 was deducted from CCA: my husband used 25% ($4500) of the CCA and I used 30% ($5400) of the CCA which is correct; however, my daughter did not use any CCA in her return, the total amount of CCA deducted should be %4500 + $5400 = $9900, not $18000.  How to let UFILE know that my daughter is not claiming CCA, only my husband and I are claiming CCA so that the correct amount of CCA can be deducted?

Thanks!

 

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Because this is a shared property, you should select the option "Partner level (Pro-rated amounts)" instead of Business level.  Enter the percentage appropriate for each owner.  Then on your daughter's return, limit her CCA to $0.00.  If the amount remaining for the undepreciated value of the property doesn't match what you actually claimed, then next year, you'll need to amend the opening balance to the correct amount (current value - $9900 deducted in 2021).    

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Hi LiseL,

If the total cost of a condo property is $400000.0, and the ownership ratio is 10%:20%:70%, in the CCA column "the opening balance of the undepreciated capital cost", should I enter $40,000.0 on the first owner's tax return, $80,000.0 on the second owner's tax return, enter $280,000.0 on the third owner's tax return,

or enter $400000.0 on each owners' tax return?

Thanks!

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