Anne Osinski acquired a townhouse unit in 20X0 for $120,000 (land $10,000, building $110,000). She bought the unit in order to rent it. By the end of 20X2, the undepreciated capital cost of the building was $103,500. In August 20X3, Osinski decided to live in the unit herself. At that time, similar townhouses were selling for $136,000 (land $12,000, building $124,000). Prior to August, her 20X3 net rental income before capital cost allowance was $1,000.
In September 20X3, Osinski purchased, for rental purposes, a residential condominium unit for $145,000 (land $15,000, building $130,000). Between September and the end of the taxation year, the condo earned net rentals of $900 before capital cost allowance.
Required:
Determine the change to Osinski’s 20X3 net income for tax purposes as a result of the above activity.