How to fill T766 to claim depreciation of my rental property

[difan]

Hi experts,

I have a rental property and it is a unit in an apartment building. I bought it for 245k a few years back and now it is way lower. I want to claim the depreciation to write off income tax.

Could you check the attached screenshot and let me know if I did it right?

It really throws me off whether it would be an "addition" but I really can't fill it in anywhere else...

Thank!

[TurboTaxSusan]

If you are entering it as an addition for this year, you need to enter the value of the property as is it is for this year, not from when you bought it. 

You can also go back to the year you bought it and adjust your return for that year to add the property at the original price. If you choose not to take depreciation for that year (or the years in between) then you can just put the end UCC balance from the 1st year as your starting balance for this year.

[difan]

Got you Susan.. I may have to adjust my previous returns...

Also, I just noticed that every year you would claim less than the previous year because it is 4% for the remaining balance... For example, if it is 100k to begin with, then in the first year I can deduct 400. The next year I can only deduct (10k-400)*4%=384, and the year after will be (10k-400-384)*4%=368.64. Does it sound about right? thanks!

[TurboTaxSusan]

Yes, that's correct.