I bought a rental with wife last year with my wife and we own it 50/50. I recorded it as "co-ownership" on last year's tax return and added 50% of purchase price to UCC on my tax return, not 100%.
The revenue and costs seem to be split properly automatically by Turbotax. However, when I reviewed the CCA calculation, it looks wrong. It looks like Turbotax is calculating the CCA based on the 50% purchase price I entered into UCC, and then taking half of that amount (I believe I'm effectively only getting 25% of the total CCA on the property instead of 50%)
Should I have entered 100% of the purchase price into UCC additions last year to ensure Turbotax appropriately calculates CCA? The additional wrinkle is that I have another rental property that is only under my name and it seems like the net income on that property influences how CCA is deducted on the jointly owned property. Specifically, the amount of CCA deducted on the joint property seems to be different on my return vs hers.
You have entered correctly 50% on your side. You also should enter 50% ( duplicate same entries) under your wife's rental property records.This will account for 100% of purchase.
The reason you see only 25 % on your return is due to the Half Year rule : you are entitled to only half of depreciation deduction in the year of additions, because you have not owned asses for the full year. Next year you will see a full deduction.
I'm experiencing the same issue and confusion. Has the CCA data entry system changed since this 2019 post?
I understood from prior years and from other people's posts on here that when adding a new CCA item I should put 50% of the total cost in each spouses' CCA page (e.g. 50% of cost of furnace). But it looks like Turbotax software is then is only adding 50% of this amount to the base amount (i.e. resulting 25% of CCA per partner instead of 50%). Example of this below.
I see multiple posts on here that state to enter 50% of CCA in "Total cost" - but two Turbotax staff I spoke to said to enter 100%.
I know in the first year after expense you can only claim 50% of eligible amount (i.e. 2% for class 1) but this should affect the amount claimed that year, not the "cost" vs. "base amount".
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