I own a rental property with my partner, split 50%.
We have made some additions to the property this year and have added the value as CCA in T776's Area A with the Easy Steps method.
In that field, we have put the full amount, let's say 5000, in both our forms. However, when we switch to each of our Quebec TP-128, the amount entered in 2500. We cannot change that value without overriding it.
Why is the TP-128 value different here? I expect the same amount as the federal at 5000.
In order to assist you properly, we will need more details. We were not able to replicate the situation you explained.
Can you please tell us what is the class of acquisition?
Did you claim DIEP or AIIP?
The half year rule only applies to CRA on the first year. If it's not the first year, it will calculate the full amount. As for Quebec, in most cases, Quebec applies the half year rule automatically every year not just in the first year, and of course it depends on the class.
Thank you for choosing TurboTax.
I am specifically looking at the tables in T776 Area A and TP-128 Section 4. I expect them to report the same values, but they are not.
Here's my example. For the current year, I have purchased appliances for a rental apartment. I enter in the CCA through Easy Steps, but validate this with the forms.
So, are you saying that in the TurboTax is automatically applying the first year rule of 50% to the value in TP-128 Column 3?
I don't understand why that would happen. Can you provide the documentation that explains why this happens automatically?
What happens if I don't claim the CCA for the year and let the 5000 be UCC for next year? I've tried this and T776's Area A, Column 2, reports the full amount, but T128, Section 4, Column 2, still reports 50% of that value.
I've experimented a bit. TP-128 doesn't apply the 50% from the first year rule. Instead, it's applying the percentage from the the share of ownership in TP-128 Box 38.
But again, why is TurboTax's TP-128 calculation doing this and the T776 form is not?
And another thing: If I claim an asset as DIEP. TP-128 Section 4, Column 8 shows the value as 50%, but Column 9 shows the value as 100%. So in my example, Column 8 is 2500, but Column 9 is 5000. And Box 393 is 5000.
This means that TP-128 the value in Box 394 is being calculated from 50% Net Income and 100% CCA. Again, that doesn't make sense.
Here is an example for you to compare:
I have entered the appliances in Area B
The CCA calculates on the T776 - The half year rule applies in the year of acquisition - only 50% of the CCA base is eligible for depreciation in the first year and class 8 allows for 20%.
This is how it works when 50%: On the federal side, you enter the total amount of the asset in the CCA table and then calculate the portion of the CCA that you can claim on line 9936 of the T776, but on the TP128, we calculate the portion of the share directly in the CCA table, and the CCA amount you can claim will show up on line 393 of the TP128. That is why you are only seeing $5000 in the T776 but $2500 on the TP128 CCA table.
Thank you for choosing TurboTax.
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