Ms. Stacy Hawthorne owns a residential rental property that she acquired in May 2017 for $310,000. The
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Ms. Stacy Hawthorne owns a residential rental property that she acquired in May 2017 for $310,000. The beginning UCC of class 1 is $299,800. Rents for the year total $36,000, while rental expenses other than CCA total $22,000.
• She also acquires a second residential rental property in March 2021 at a total cost of $220,000. Of this total, $53,000 can be allocated to the value of the land. Her rental income for the year totals $28,000. Rental expenses are $3,300 for property tax, $2,600 for utilities, and $2,100 for repairs and maintenance.
• Determine the maximum CCA that is available for 2021 and Ms. Hawthorne’s minimum net rental income for the year.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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