A question to the tax pros. Here is the situation. I bought a house in Jan 2011 and have been renting it from April 2011 to March 2012. Now, I am ready to file my tax returns and would like to incorporate the rental income or loss in my tax return. I have most of the things cleared except for CCA calculation. Can someone provide me an overview as to how this is done? I am an accountant myself and a bit confused about the following
-The class where my condo town house will fit in
-How do I calculate CCA? For example,I purchased my house for 400K, so, it is 400k x 2%(or whatever)x half (since I had the property only since Jan)?
Any pointers whould be greatly appreciated.
Regards
T
-----------------------------------------------------------------
"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Location: Western Hemisphere
Posted on: 15-04-12 18:09:14
Timon -
Do you need to take CCA? I decided not to on my rental property. By depreciating, I didn't want my adjusted cost basis to go down and create a higher lump sum of capital gain if and when I sell the property.
-----------------------------------------------------------------
Dimple2001
Quote:
Originally posted by Timon
...and would like to incorporate the rental income or loss in my tax return.
Why would you do that. Just fill in form T776 - Rental and move on. Don't get into CCA for a rental property. My 2 cents.. (and Dimple2001's too)
-----------------------------------------------------------------
SS
Reiki Grand Master
In normal cases, claiming CCA is not in favour of owner because when you sell home and pay capital gain, you have to add your claimed CCA in income and you will be endup paying more tax than saved by claiming CCA.
Actually it all depends on your tax rate of the years when you claimed CCA and when you sell home.
-----------------------------------------------------------------
Success is Never Ending and Failure is Never Final.
Thanks all. I dont think I am going to claim CCA as it could create issues for me later on. I now converted my rental property into my main residence and this could make things more complicated.
T
-----------------------------------------------------------------
"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
