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


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Posted

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

 

Posted

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. 

Posted

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

 

 

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