CCA Calculation is different in T776 and TP-128

[mr-blah]

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.

[TurboTaxVeronique]

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.

[mr-blah]

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.  

• I am claiming these additions as class 8 for a total of 5000.
• In Area A of T776, column 3 "Cost of Additions", the sum shows up as the full value.  This is what I expect.
• In TP-128 Section 4, Column 3, this value shows up as half, 2500. This is not what I expect.  I would expect TP-128 Section 4, Column 3 to be the same as T776 Area A Column 3.
• This happens regardless of if I claim DIEP or AIIP.

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.

[mr-blah]

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?

[mr-blah]

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.