Jose Montana owns a cottage that he purchased in 2011 for $330,000, with $100,000 of this...

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Jose Montana owns a cottage that he purchased in 2011 for $330,000, with $100,000 of this amount reflecting the value of the land. On January 1, 2020, this cottage is converted to a rental property. At the time of conversion, it is estimated that the cottage has a fair market value of $600,000, with $150,000 of this amount reflecting the value of the land. For 2020, rental income, net of all expenses except CCA equals $30,200. What is the maximum amount of CCA that Jose can deduct on this rental property for 2020? Jose Montana owns a cottage that he purchased in 2011 for $330,000, with $100,000 of this amount reflecting the value of the land. On January 1, 2020, this cottage is converted to a rental property. At the time of conversion, it is estimated that the cottage has a fair market value of $600,000, with $150,000 of this amount reflecting the value of the land. For 2020, rental income, net of all expenses except CCA equals $30,200. What is the maximum amount of CCA that Jose can deduct on this rental property for 2020?

Answer rating: 100% (QA)

To calculate the maximum amount of Capital Cost Allowance CCA that Jose can deduct on the rental pro... View the full answer