You cannot use CCA to create or increase a rental loss. If you have more than one
rental property, you have to calculate your overall net income or loss for the year from all
your rental properties, even if they belong to different classes, before you can claim CCA.
However, you can create a rental loss if you have a in the year you dispose of your rental property.
In this case, see claiming a terminal loss.
Note:
TurboTax uses the to calculate CCA.
TurboTax - 50% rule.
The CRA chart includes two columns (columns 5 and 6) which you won't see in TurboTax. We leave these out as
TurboTax automatically does these calculations for you.
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Enter information about the classes (other than class 10.1) you claimed last year.
If you transferred last year's return, this information is filled in automatically.
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in the Calculation of capital cost allowance claim chart, enter the Class # you used last year, and the
at the start of your fiscal year.
You have to reduce your UCC at the start of the current fiscal period by
any investment tax credit deducted, refunded, or both in 2022.
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Enter eligible new additions in the year if you want to claim CCA on them.
The property must be in order to be eligible.
Do not enter the cost of land here. Instead, enter information about land in the chart Land additions and dispositions in the year (line 9923).
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Complete the additions in the year chart that matches the type of property according to CRA guidelines.
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If part of the property (other than a motor vehicle) is for your own use,
enter your personal portion in the Personal column. The personal
portion for vehicles is calculated using the mileage you enter.
CCA on motor vehicles will not be claimed until you complete the mileage.
If you have more than one vehicle with CCA, see Adjusting allowable portion.
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After completing the additions in the year chart, return
to the Calculation of Capital Cost Allowance claim chart. If you already
had property in the same class, the calculation of CCA for that class now includes your newly acquired property.
If you did not already have property in the same class, enter the class number in the first column, then press the Tab key on your keyboard.
The information about your new property (or properties) appears.
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If you sold or otherwise disposed of property on which you had claimed CCA:
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Complete the dispositions in the year chart that matches the type of property according to CRA guidelines.
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In column 3, enter either the (minus any related expenses) or the , whichever is less.
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If part of the property (other than a motor vehicle) is for your own use,
enter your personal portion in the Personal column. The personal
portion for vehicles is calculated using the mileage you enter.
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If you had a , see claiming a terminal loss.
Any is automatically added to income on page 1.
TurboTax combines the rental income and losses from all your properties and automatically
reduces CCA so that it does not create or increase a loss.
TurboTax calculates the maximum allowable CCA for 2023 and claims it on line 9936.
The amount in UCC at the end of year is the remaining undepreciated capital cost allowance to be carried forward. If you have an amount here
but you no longer have any property in the class, you have a terminal loss. See claiming a terminal loss for what to do in this case.
If you disposed of a property and you also have a capital gain for the property (that you do not defer or postpone), enter it in Schedule 3.
