Warning: Rental property

You’ll see the following warning message in H&R Block’s 2024 tax software if, while completing the T5013 page, you entered an amount in box 107 (limited partner’s rental income (loss)):

Based on the income and expenses you entered on the T776 page (or T776 & TP-128-V page if you live in Québec), you have a rental loss this year. To create this loss, did you use carrying charges or depreciable property (buildings, furniture, equipment, etc.) related to your rental property? Most people will be restricted from creating or increasing the amount of their loss for tax purposes by claiming capital cost allowance (CCA) on rental properties. But there are some exceptions. If one of these exceptions applies to your situation (these exceptions are described on the Canada Revenue Agency (CRA) website), you need to report the carrying charges and CCA for your depreciable property in the Rental and leasing property section on the Alternative minimum tax (T691) page. You can find the T691 page in the OTHER section under the CREDITS AND DEDUCTIONS tab. If the exceptions don’t apply to you, or your loss didn’t come from carrying charges or CCA, you can ignore this warning. [warning]

 

How do I fix this?

If you claimed carrying charges or capital cost allowance (CCA) for your rental property, you can clear the warning message by entering your information in the Rental and leasing property section on the Alternative minimum tax (T691) page.

Note: The Alternative minimum tax (T691) page is on the Credits & deductions tab under the Other heading.