Why would CCA calculate only on a loss, and not on profitable rental properties?

I have a client (husband/wife) with four rental properties.  Three of the properties show a profit, but no CCA is being calculated.  When I look at T776CCASummary, there are amounts in three different classes (1, 8, 10) on all three properties for husband and wife (shared amounts).  Nothing is over-ridden, but Profile is calculating $0 CCA.  They have a fourth property that sat empty half the year for renovations, so it is a loss.  This is the only property that Profile is calculating CCA, to increase the loss (this I have over-ridden because you can't claim CCA on a loss).  Both spouses have taxes owing.  What is going on?  How do I get the CCA to calculate on the other four properties?

Answer

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You can't use CCA to create a loss in aggregate on rental income.  

However, you most certainly can use the CCA to create a loss on one property, which will then offset rental income on another.

What most likely is happening, is Profile is taking CCA on the lowest % CCA classes you have first, hence the other CCA accounts showing as nil.

However, should you choose to change this for whatever reason, by simply overriding the CCA claim in one, should empower Profile to pick the next most appropriate class to use.

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