Irene owns two residential rental properties and purchased a third in 2021. Details related to the...

 

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Irene owns two residential rental properties and purchased a third in 2021. Details related to the properties are as follows: Total rent received ($2,000 is a deposit in respect of next year) $56,000 Total expenses to earn rental income, excluding CCA $33,000 Building #1 opening UCC $498,000 Building #2 opening UCC $695,000 Proceeds of disposition on building #1 on April 30, 2021 $550,000 Original cost of building #1 $578,000 Cost of new rental building purchased on May 1, 2021 (land excluded) $888,000 Required: Compute the total minimum rental income for Irene in 2021 in respect of her rental operations. Hint - organize your work by property. Remember to include any terminal loss or recapture. Don't forget to take CCA. Irene owns two residential rental properties and purchased a third in 2021. Details related to the properties are as follows: Total rent received ($2,000 is a deposit in respect of next year) $56,000 Total expenses to earn rental income, excluding CCA $33,000 Building #1 opening UCC $498,000 Building #2 opening UCC $695,000 Proceeds of disposition on building #1 on April 30, 2021 $550,000 Original cost of building #1 $578,000 Cost of new rental building purchased on May 1, 2021 (land excluded) $888,000 Required: Compute the total minimum rental income for Irene in 2021 in respect of her rental operations. Hint - organize your work by property. Remember to include any terminal loss or recapture. Don't forget to take CCA.

Answer rating: 100% (QA)

Solution During 2020 irene received rental income of 56000 out of it ... View the full answer