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Level 2
posted Apr 24, 2023 9:57:14 PM

Can I skip the rental house depreciation for a couple of years?

Hello,

I own a rental house and rented it out. I always took depreciation in the past years. However, I have a low income in 2022, so I am thinking to skip the house depreciation and absorb the rental income and pay tax on it to avoid the depreciation clawback when I sell it.

Is there any negative consequence for me to skip the depreciation for a couple of years except paying tax for the rental income now?

Thank you.

0 1 950
1 Best answer
Moderator
Apr 29, 2023 10:29:29 AM

Yes, you can skip taking CCA. It's not mandatory.

 

If you don't take CCA then the amount will stay in your UCC for future years.

1 Replies
Moderator
Apr 29, 2023 10:29:29 AM

Yes, you can skip taking CCA. It's not mandatory.

 

If you don't take CCA then the amount will stay in your UCC for future years.