Meaghan Posted May 8, 2020 Report Share Posted May 8, 2020 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? Link to comment Share on other sites More sharing options...
Nawal Posted May 11, 2020 Report Share Posted May 11, 2020 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. Link to comment Share on other sites More sharing options...
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