I have a rental property that I want to claim CCA for. I am trying to understand what is considered the cost of the property.
- Can I include installation of blinds as a cost to the property?
- I paid a contractor to add a door to one of the rooms since it was open - can i claim that as a cost to the property.
- Since this is a condo in Toronto, do i need to figure out the land and building value? I’m guessing since this is a condo I do not have to.
Thanks and your answers are very much appreciated.
Unless you spent over $1,000 on blinds, and the place couldn’t be rented without, you don’t have to add them to the cost of the property. Addition of a door could be considered “structural”, but you could probably argue it either way (either expense or capital cost).
However, CCA on a building is typically 4% so why would you want to add to the capital cost when you can deduct them as repairs for 100% ? You can’t double-dip, if that’s what you’re asking - either you add them to the cost of the property OR you claim them as expenses, not both.
You’d have to check the legal documents (land title, etc) to determine whether you (the condo owner) also own a portion of the land. If it is a detached or semi-detached unit, you probably do. If it is an apartment-type unit in a multi-floor building, you probably have no right to the land ownership.
If you do own the land, you do have to split the purchase cost between building and land.