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posted Feb 17, 2022 2:19:03 PM

If I have never claimed CCA on a rental property, would the UCC for that property just be the initial purchase price?

I had a primary residence that converted to a  rental property, but never had UCC show on my returns and never claimed CCA. Can I just enter UCC as the initial purchase price without refiling for the year of acquisition to show the actual acquisition?

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Level 3
Feb 18, 2022 12:13:40 PM

As per Canada Revenue Agency (CRA) undepreciated capital cost (UCC)

Generally, UCC is equal to the total capital cost of all the properties of the class minus the capital cost allowance you claimed in previous years. If you sell depreciable property in a year, you also have to subtract from the UCC one of the following 2 amounts, whichever is less: 

  • the proceeds of disposition of the property (either actual or deemed) minus the outlays and expenses incurred to sell it
  • the capital cost of the property

For more information please see this CRA link: Depreciable property

 

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