T776 - Statement of Real Estate Rentals

Separate Statements

Each Form T776 (TP-128.F or TP-646.F), Statement of Real Estate Rentals, includes a section used to calculate the capital cost allowance (CCA). The gross and net income on each statement are carried over to the Summary of Real Estate Rentals (Jump Code: 776S) and the comprehensive income is carried over to lines 99 (gross) and 09 (net) of the T3 return (lines 58a (gross) and 58 (net) of the TP-676 return).

The description cell in the summary uses the address of the rental property as entered on the appropriate T776 form.

T5013 (RL-15 slip)

The amounts in boxes 23 and 26 of the T5013 slip (box 3 of the RL-15 slip) are updated to the Summary of Real Estate Rentals.

Restrictions on CCA Claimed

The program restricts CCA claims to the total net rental income before CCA (including the recapture, where applicable).

CCA Optimization

If the CCA is to be limited, by default, the program does not optimize the order in which the CCA classes are depreciated. Instead, the program calculates the CCA according to the order in which the CCA classes were entered. If you are using the functionality Sort by putting classes 1, 1.2, 1.3, 3 and 6 at the end to depreciate them last, the class order will be modified, and classes 1, 1.2, 1.3, 3, and 6 will be moved to the end of the CCA table to be depreciated last. This way, the program will calculate the depreciation on all classes other than building classes, and will then calculate classes 1, 1.2, 1.3, 3 and 6 last to reduce the net income.

Cancelling the CCA calculation

The following two check boxes allow you to cancel the CCA calculation:

Do not calculate CCA for all classes; and
Do not calculate CCA for buildings in classes 1, 1.2, 1.3, 3 and 6.

Separate Classes

Each rental building acquired after 1971 costing $50,000 or more must be included in a separate CCA class.

Rules Specific to Québec

Form TP-1086.R.23.12, Costs Incurred for Work on an Immoveable (Jump Code: Q1086, must be completed when renovation, improvement, maintenance or repair work is carried out with respect to any property used to carry on a business or to earn rental income.