Unused past year CCA claim for rental houes

Forum|Forum|1 year ago
April 28, 2024
1 reply
0 views

I could only claim part of CCA for 2022 to make the profit zero.

Can I claim the unclaimed CCA for this year 2023. Turbotax allows only to use the entitled CCA for this year. Not for last year unclaimed amount. How can I do?

Thanks,

Gamini

TurboTax Online Premier

TurboTaxSusan

No, you can only claim the maximum CCA calculated for this year. The CCA that you didn't use last year will stay in your UCC balance, for use in the future.

Nimal Gamini SenarathAuthor

SO assume, I bougth the house in 2021 and 100000 is the value excluding the property.

So I claim only 100000*0.5 *0.04 = 2000 as CCA in year 2021 tax return. REmianing value: 98000

In 2022, I can claim 98000*0.04 = 3920. ButI used only 1920 as CCA to make income zero. CCA off $2000 is not used. Remaining house value is 98000- 3920 = 94080.

Now in 2023, turbotax calculate 94080*0.04 = 3763. But since I did not claim full amount in 2022, can I now claim 3763 +2000 ($5763) as CCA, becaus I did not claim the last year depreciation. Because house is depreciated by 4% in two years. Thanks fpr the clarification.

InnaE

The maximum amount of CCA to claim in any year is the opening undepreciated capital cost (UCC) multiplied by the CCA rate.

You would only deduct CCA that you've actually claimed from the UCC. If in 2022 you only claimed 1,920 in CCA, then your opening UCC balance for 2023 should be 98,000 - 1,920 = 96,080, and the maximum CCA you can claim in 2023 is 96,080 * 4%.

Thank you for choosing TurboTax.