CCA on Rental Property Assets Question

On the T776, check to see if you marked the "Type of Ownership" as a co-ownership or as a partnership.  CCA for a partnership is calculated at the partnership level - total CCA is calculated then 50/50 of the net income to each partner, assuming it is a 50% partnership.  If it is a co-ownership, the co-owners share income and expenses according to their % of ownership, but CCA is calculated on their own cost of the property.  Each co-owner records one-half of the capital cost in their own CCA schedule. In a co-ownership, they each own one-half of the capital assets and you should only record one-half of the cost.  The decision as to whether or not to claim CCA is left up to each co-owner - sometimes, one may wish to claim CCA and the other not to claim.

Legally, a rental is a co-ownership.  A partnership is technically a sharing of an ongoing operation with a view to profit, whereas a rental is the ownership of an asset which is owned for capital gain and which is earning investment income in the meantime. In practice, I find most T1 preparers record the rentals as a partnership to keep it simpler.  If using the co-ownership option, you have to ensure that you correctly split the capital cost of all assets.  This usually gets missed if the file gets moved to a new tax preparer.  Also, I find the way Profile records CCA it does get confusing.