Hello,
I own a rental property shared 50% with a co-owner (my wife, filing taxes with me).
When claiming CCA, we're both starting with the same UCC for the building, let's call it $100,000, class 1 (4% rate).
I noticed that TurboTax allows us each to claim up to 4% of that UCC against our taxes, which in this example would be $4000 for my wife and $4000 for myself. Obviously, that's an 8% total and that seems incorrect. This applies to all CCA classes.
My questions
- Should the starting UCC for each of us be half of the total UCC ($50,000 in this example)?
- Should the UCC be what it is and we manually make sure we don't exceed 4% total claim? Which seems like a bug in TurboTax
- Can we each claim 4% but then the whole depreciation process goes twice as fast? (seems counter-intuitive).
- Anything obvious I'm missing?
Thanks for the help.