Hi, this is my first time filing tax myself using turbotax (in the past it has been with accountants who I feel aren't asking enough probing questions to maximize our return).
We have a rental property, for which we have a pretty steep loss - we paid way more mortgage interest than the rental income due to the high rate environment. While filling in the pages, we entered the rental income, the interest, property tax and all other expenses. However, when the filing was done, turbotax shows a CCA amount as part of a "warning" that we could not make sense of. Can you please advise how Turbotax calculates the CCA, and why it would generate a number there when there was no instructions to claim CCA?
Also, since we reviewed and didn't see any error in the rental income and expenses we provided earlier, we submitted the tax return anyway. What is the consequences of this number being calculated wrong?
Lastly, is it possible to pay a one-time fee for someone to take a look at the already-submitted tax return to ensure we do not run into any trouble?
Thank you!
If it is a Warning and not an Error, then it can be ignored and skipped. The Warning alert does not automatically mean something was done or entered incorrectly. It can be triggered if a high amount of certain credits or deductions are being claimed. Warnings are there just to ensure that if the situation applies to you, you can go back and make any necessary modifications.
Errors, on the other hand, will prevent you from filing because something in your return is incorrect and the return will not be accepted by the Canada Revenue Agency.
The Canada Revenue Agency (CRA) will accept or deny the claim and inform you on the assessment you will receive.
Unfortunately, our live services to verify the returns are only offered prior to sending in the return to the CRA.
If you wish to clarify this information you may wish to contact the CRA by calling them at 1-800-959-8281.
Thank you for choosing TurboTax.
Thank you for getting back. Can you please advise what is the TurboTax formula to calculate a CCA number? We didn’t enter that value ourselves (we only entered total rental and total expenses) so we got puzzled on how that value was generated.
This TurboTax article explains CCA and has an example calculation: https://turbotax.intuit.ca/tips/what-is-capital-cost-allowance-cca-14405
Unfortunately our tax experts are not able to review a return after it has been filed.
I am having the same issue. I have not added an CCA info anywhere into the return, nor can I tell where it is doing the calculation. Rental summary is correct from T776 but then on the income summary there is a wildly different number. And netfile won't accept the return. Have reported rental this way for many years and never had this problem before.
Please contact our phone support team at 1-888-829-8608 as they will be better able to assist you.