As per my understanding, you cannot use CCA to deepen the loss in T2. I would be interested if TaxCycle could auto adjust the return to only claim CCA to the limit of the income. At the moment, it appears it deepens the loss.
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That is not correct.
The CCA limit is for individuals, not corporations. TaxCycle has it right. And, for a T1, it’s the aggregate rental income/loss in the case of multiple properties.
Corporations are also restricted from increasing a rental loss with CCA if it is not their primary business.
As others have pointed out, in general, CCA claim can create or increase a loss for a corporation. However, this would not be allowed is if the capital asset is related to a rental property in which rental income is considered passive income. If this is the case, you would fill out a rental worksheet and “link” the capital asset to the rental property.
Now, to claim just enough CCA to offset taxable income, there are 2 ways to achieve this.
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You can select 1(a) in the Optimization Worksheet.
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In S8, you can customize the amount of CCA claim by entering a desired amount here.
Steven
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