Fillig in 1-4%CAA

[Meaghan]

Hello All,

I am trying to fill out a renovation on a rental property for the first time.  I made very little income from the rental property and would like to enter the claim but save it for upcoming years.  I am using the 1-4% form and do not understand what exactly goes where.  I am the sole owner and it is a house.  If someone can walk me through it I would appreciate it!!

Thank you,

Meaghan

Opening balance of the undepreciated capital cost  

 

  QC 

 

 

To whom the CCA should be allocated Business level (full amounts - 100%)Partner level (prorated amounts)Use of home for business purposes 

 

 

Portion (%) of CCA used for business or employment  % 

 

 

Purchase date of the property  

 

  QC

 

ACB of the depreciable capital property in this class  

 

  QC 

 

 

Limit to the CCA of this class  

 

  QC 

 

 

Description and amount of capital additions (other than AIIP):

 

 

   

 

  QC 

 

 

Description and amount of capital additions of AIIP:

 

 

   

 

  QC 

 

 

Application of half-year rule to current year additions YesNo 

 

  QC YesNo

 

 

Did you dispose of an asset in this class?

[Nawal]

Hi Meaghan, If you have made repairs to your rental property, you must determine whether it is a capital or current expense.

We invite you to consult the CRA guide T4036 at the following link:

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4036/t4036-17e.pdf

If you have determined that this is a capital expenditure, please follow these steps:

1. In the "Left-side menu on the Interview tab", select the heading "Rental property income".

2. In this section, go to the sub-section entitled "CCA", which already contains the information on your building.

3. On the line for "Description and amount of capital additions", in the first field, enter the expense and enter the amount of this expense.

4. On the line for "Application of the half-year rule to the current year's additions", select the option that corresponds to the situation.

5. If you do not wish to claim the CCA for this expense, go to the line "Limit to the CCA of this class" and enter $ 0.00, otherwise enter the amount of CCA you wish to claim that is subjected to the deduction maximum allowable.

This expense will be carried over by the program on page 3 of Form T776, specifically in Area C of this form, and the amount will be added in column 3 of Area A.