I have 2 rentals with my wife - a Condo that we have owned for 6 years, and a house that we have owned for 18 months. Would these fall under a depreciating asset and I should be claiming a certain class for? If I do not, then it is a huge shift in my return that I owe. If I make it Class 1 for example it is a big shift the other way.
Thanks for the help!!
Yes, you can claim CCA on your rental buildings. However, as the price of housing tends to go up rather than down, you are likely to have recapture when you sell your rental buildings. Recapture means that you will have what is left in your UCC balance after the disposition added to your income, possibly causing you to owe more in taxes.
Claiming CCA on your rental buildings may also cause problems if you want to claim one of your properties as your principal residence.
cclingwall-bdo-c
New Member
rob-ross
New Member
krotttaxes
New Member
x_m_z1
Level 2
toshiko-shibano-
New Member
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.