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Level 2
posted Mar 11, 2024 12:18:03 PM

How to determine the building value of a rental property for capital cost allowance purpose?

I purchased a rental property located in Richmond Hill, Ontario, in 2022 and would like to get its building value for the purpose of calculating capital cost allowance.  I've looked through my property tax assessment notices and closing documents, I couldn't find the value breakdown for land and building, all I have is the total assessment value.  Where else could I obtain the building value?  Thanks.

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4 Replies
Moderator
Mar 11, 2024 12:27:30 PM

You can try getting the value of similar properties in the area. Or you can also get a historical property assessment done for 2022.

Level 2
Mar 11, 2024 12:53:06 PM

Thanks for your quick response.

Level 2
Mar 15, 2024 11:03:34 AM

Thank you for your reply.

 

I'm not able to get a value from similar properties in my area.  And it's quite costly to get an assessment done.  Can I use the dwelling replacement cost from my home insurance document instead?  Does CRA recognize this as a basis used for calculating CCA for a rental property?  Thanks.

Moderator
Mar 15, 2024 11:10:43 AM

We would recommend that you contact the CRA at s1 (800) 959-8281. They will be able to advise you if they would allow you to use your insurance replacement cost. 

 

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