In the 2021 return, equal partners own a building. Area A transfers the CCA amount in partner 1's line 9936, but Area A does not transfer the CCA amount into partner's 2 line 9936. This did not arise as an issue in the 2020 return. Am I inputting something wrong, or is there a software glitch?
Since you are splitting the CCA equally among two partners, you will need to split the amount on Line 9936 Area A for each partner.
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Thank you for your April 19, 2022 reply KateQuinn (level 4).
The problem concerns the 2021 individual Canadian income tax return.
Two spouses own real estate in a 50 - 50 partnership. I input the information for both taxpayers into TurboTax 2021.
The CCA (capital cost allowance, income tax term for depreciation) is calculated on the entire (100%) real estate as an expense of the partnership. The form takes the net profit and divides it between the partners.
In the 2021 tax return, TurboTax put the full 2021 CCA into line 9936 for my spouse and $0 (Nil) for me. Area A for the business calculates the same CCA for each of us; the form says “enter the amount on line 9936 of Part 4)” but the software did not.
Two possibilities: A glitch arose due to something I did, or due to the software.
After googling the issue and trying various changes, I called the CRA help line. The person I spoke to said this is not an issue for CRA.
Rather than spend more time troubleshooting, this is what I did. I created a new return for myself, by importing (again) the 2020 return information for my return only. TurboTax 2021 Premier permits up to 12 returns. Then I manually input all the same data for my return only. That worked, but it added a couple of hours work The same number appears in line 9936 for me and my partner.
In case anyone else encounters this issue, I hope this helps.