I forgot to enter a fixed asset purchase in prior year; now I want to claim CCA on it.

[BLSM]

I'm an idiot, but I hope someone can help me.

I'm working on my 2022 tax return, and I have a problem on the T2125 - Business activities.

In Dec. 2020, I purchased a new office computer.  I had no plan to claim CCA, and totally missed adding the purchase to my tax return.  In 2021, I also didn't notice, as I did not try to claim CCA on any assets.

Now, for 2022, our income has returned to more normal levels, and I would like to claim CCA on our assets, however, my computer is not listed!

I called CRA, and they told me to amend my 2020 return, to add the purchase of the computer.  I can probably do that online, through 'My Account', so that's no problem.  My problem is, how do I deal with it on my UFile Windows?

1.  Do I go back into my 2020 netfiled return, and just add it in?  Either way, it will make no difference to money owed.

If I do that, how do I get it into the 2021 CCA schedule?  Do I have to add it in there as well, and start over with carrying forward my 2021 file into 2022?

I can't just add it in the 2022 return because I didn't purchase it in 2022, and I want to be able to claim the full year's CCA of 55%.

Any ideas?

Thank you in advance for any suggestions you might offer.

Brenda

 

[Geo123]

Hello BLSM,

You would add the acquisition in the year it was purchased of 2020 (purchase can not be deferred) and limit the CCA to $0.  Update the 2020 UFIle file with the acquisition (and CCA C/F) then update the 2021  UFile file and CCA C/F).  The CCA would then be carried forward to 2021 and 2022 (again limited to $0). 

The C/F schedule and ending undepreciated capital cost (UCC) is updated but you will have to enter the opening undepreciated capital cost (UCC) for each year.

If I understand correctly you will update with the CRA directly so no need to ReFile via UFile. 

[BLSM]

Thank you, Geo!  That is what I expected, but wanted to make sure before messing it up further.

Brenda

 

[BLSM]

Okay, this is where I'm at with this.  I signed into My Account today, but this is not an area I can change on CRA, so I've filled in the T1-Adj. to mail, along with a copy of the invoice for the computer.

I went into my 2020 tax file and entered the computer purchase, with 0 CCA taken, and it shows up on the return and the carryforward sheet.

I then went into my 2021 tax file and entered it again, and it shows on the return and carryforwards.

I then deleted my 2022 started return, and re-imported the 2021 carry forward return, so it would include the computer purchase on the CCA sheet.  It does not include it, however!

Have I done something wrong, or do I need to add it in on the 2022 form as well, showing the correct UCC at the beginning of the year?

Also, my husband and I are co-owners of this business, so I just fill out the business forms once, and half shows up on his return.  When I file the T1-Adj., do I need to file a second one for him, or will the purchase automatically go on his file once they enter it at CRA?

Thank you!

Brenda