Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
CCA rates on rental property
03-02-2011, 11:06 AM
Post: #1
CCA rates on rental property
I am helping my friend with a tax return. He owns a town home rental property which is fairly new. So, this friend receives a rental income. Now, I am doing his tax return and included this rental income in his return. I believe he can deduct a CCA to reduce his rental income. Should I give 10% [class 6] deduction for the building? Should I get property value from BC assessment statement?
Find all posts by this user
Quote this message in a reply

03-02-2011, 11:30 AM
Post: #2
RE: CCA rates on rental property
Check the date of acquisition.
If the property is acquired after 1987, it belongs to Class 1, which is 4%.

Class 6 refers to buildings acquired before 1979 etc. etc. Class 6 buildings must be used to gain income from farming or fishing and must have no footings or other base supports below ground level.

If the townhouse is acquired between 1980-1987 it might fall in class 31 or 32.

You need to get the land versus building ratio breakdown based on BC Assessment.

Go to CCA rates on depreciable rental property for more information.

Please note that this is a tax opinion and is not to be construed as advice. You should check with your accountant for tax advice.
Find all posts by this user
Quote this message in a reply
03-03-2011, 09:34 AM
Post: #3
RE: CCA rates on rental property
are there any future implications by reducing rental income through CCA? Does it affect the capital gain when the property sells for a higher price and end up paying more for capital gain?
Find all posts by this user
Quote this message in a reply
03-03-2011, 09:40 AM
Post: #4
RE: CCA rates on rental property
There is a restriction on using CCA to create a rental loss. Tax Interpretation Bulletin IT-195R4 discusses the restriction on claims for capital cost allowance (CCA) that would otherwise be deductible in respect of rental properties. With certain exceptions, this restriction prevents a taxpayer or partnership from creating or increasing the amount of a loss for income tax purposes by claiming CCA on rental properties. It thereby prevents the taxpayer from using such losses to shelter or reduce other income subject to tax.

Regarding future implications, when you sell capital property, you have a capital gain, and 50% of the capital gain is non-taxable.
Find all posts by this user
Quote this message in a reply
07-19-2011, 07:55 PM
Post: #5
RE: CCA rates on rental property
Hello,
Thanks for the information. I would also like to know about long term capital gain and whether a leased or rented property comes under the act or not. Please give any references if possible.

Looking for good Rental Management: Property Management and Rental Property Directory
Find all posts by this user
Quote this message in a reply

07-22-2011, 07:55 AM
Post: #6
RE: CCA rates on rental property
(07-19-2011 07:55 PM)kellywillsoin Wrote:  Hello,
Thanks for the information. I would also like to know about long term capital gain and whether a leased or rented property comes under the act or not. Please give any references if possible.

What kind of question is that? You need to give more details. Capital gains and rental property CCA are completely separate issues.
Find all posts by this user
Quote this message in a reply
01-03-2012, 08:01 AM
Post: #7
RE: CCA rates on rental property
There is a brake on application CCA to actualize a rental loss. Tax Interpretation Bulletin IT-195R4 discusses the brake on claims for basic bulk allowance (CCA) that would contrarily be deductible in account of rental properties. With assertive exceptions, this brake prevents a aborigine or affiliation from creating or accretion the bulk of a accident for assets tax purposes by claiming CCA on rental properties. It thereby prevents the aborigine from application such losses to apartment or abate added assets accountable to tax.

Excel training
Find all posts by this user
Quote this message in a reply
03-30-2012, 04:00 PM
Post: #8
RE: CCA rates on rental property
Assets that have a physical existence, or give the holders definite set of financial rights are classified as tangible assets, as opposed to intangible assets such as patents and goodwill. Cash and other tangible assets aren't the only things we can leave to our descendants. Recording a family history for generations to come might not have urgent value in terms of monetary money. Understanding the true value of a family legacy contributes to a feeling of unity and purpose.
Find all posts by this user
Quote this message in a reply
05-30-2012, 08:48 PM
Post: #9
RE: CCA rates on rental property
Leasehold interest in real property that is a rental property
A leasehold interest is the interest of a tenant in any leased tangible property.
Visit this user's website Find all posts by this user
Quote this message in a reply

04-05-2014, 08:37 PM
Post: #10
RE: CCA rates on rental property
CCA has high rates of taxes in property. These are the burden on the nation. Govt should to reduce the tax rates on the property.

property for sale http://www.adverts.pk/-1/posts/3_Property/0/
Find all posts by this user
Quote this message in a reply
Post Reply 


Forum Jump:


User(s) browsing this thread: 1 Guest(s)