Oddity regarding creating an asset for CCA on a T776.
created the T776 for a couple (spouses) each with 50% partnership in the rental.
T776 automatically created and populated in the 2nd spouse’s return when I created it.
When I created the asset to allow for CCA depreciation, it did not populate in the 2nd spouse’s return.
Is there a reason Taxcycle would not automatically create the asset in the 2nd spouse’s return?
Is there a way to tell Taxcycle to automatical populate the partner’s return the same it it does the T776?
I found out that TC CCA doesn’t automatically do the split on the asset in a partnership. You have to calculate the split and manually enter the asset amount and class in each taxpayers profile. It is a pain in the rear to do this way especially when clients have 5-6 rental properties and various other assets in each property.
It may have to do with whether you are setting the file up as a “partnership” or “co-ownership”. The software acts differently with the fixed assets depending on which relationship you indicate on the T776.
I suspect the problem is that your setup for the 776 is as a co-ownership as opposed to a partnership. In a co-ownership each co-owner enters their own portion of the capital costs not the total. Each co-owner could chose to claim different amounts of cca. When it is setup as co-owners and you enter the total costs on each spouse to will double the CCA claim.