Leila Swanson purchased two neighbouring residential properties located on a golf course in the Okanagan region of BC. Both properties were purchase for the purpose of earning rental income. Property A is rented on a nightly basis and is fully furnished while Property B is a long term unfurnished rental property that is currently being rented for $2,200 per month on a 2-year lease ending in October of next year. The total rental revenue for the year for Property A was $55,925. The following information relates to the properties:

• Both properties were acquired on the same date three years ago and each has an opening UCC balance of $465,000.
• A new couch costing $3,000 was purchased for property A on January 1. The previous couch had sustained significant wear and tear and had to be disposed of without proceeds. Property A's existing furniture had an opening UCC balance of $35,000.
• Leila performs the cleaning duties for property A between bookings. Cleaning supplies cost $25 per month.
• The combined property taxes for the properties were $6,200 and were paid in July.
• Property A is advertised on various websites and recreational magazines for a cost of $1,200 per year.
• Utilities totalled $550 per month for both properties.
• Minor repairs and maintenance totalled $3,750 for the year for the two properties.
• The properties have a monthly fee of $250 each, paid to the community homeowners association that covers yard and garden maintenance as well as access to the community amenities, such as the fitness centre and tennis courts.
• Mortgage payments related to the two properties total $3,800 monthly including principal repayments of $2,500.

Required:

Determine the net rental income or loss that Leila will be required to include in her income for the 2021 taxation year. Show all your calculations.

Note: Round all amounts to the nearest dollar and ignore GST and provincial taxes. Show all steps in your calculations, even if the result is zero.

Answer rating: 100% (QA)

Para determinar a renda lquida de aluguel ou a perda que Leila precisar incluir em sua renda par... View the full answer