Tax preparation topics for T1 returns and personal tax. How to use TaxCycle T1.
hello team ,
someone said we should not claim CCA on rental income in T776, some said they will claim CCA
may you tell me in which cases we should claim CCA in rental income T1
Thank you so much
If you are renting out a portion of your principal residence, you would not want to claim CCA because you might lose your pricipal residence status. if you are renting out a property that is only rental property butis appreciating in value, it might not be wise to claim CCA. I would claim CCA on a property that is actually depreciating in value, or on fixtures or appliances in the rental property.
The problem IMHO of claiming CCA on rental income is real estate seldom devalues. So you have a $100,000 property that has been written down to $90,000 and sells for $110,000. The first $10,000 is recapture of depreciation and fully added to the income. That can be a big ouch – especially or seniors.
Pat Gamborg
PAT’s OFFICE
1354 Fed Road
Bear River NS B0S 1B0
902-467-3358