No. You cannot use CCA to create or increase a rental loss. Please see http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P577_56059
No. You cannot use CCA to create or increase a rental loss. Please see http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P577_56059
It does not matter what other sources of income you may have. CCA on a rental property is still limited to the amount of net rental income (before CCA). In other words, you CANNOT create a rental loss by claiming CCA on a rental property that can be used against other sources of income
CCA is depreciation.
Has your rental property gone down in value since you started using it as a rental income?
If your property has increased, and you have claimed CCA, you will be in a position of recapture. ie all the depreciation you claimed will be added to your income in the year you sell the property.
Check out the implications here: http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-e.html#P1215_82090
That is true, you can claim only enough cca to bring your rental income to zero.
Thanks for pointing that out Fuzzy.
What if my income consists of T5, stocks, and rent income?
The CCA can be used to bring your RENTAL income to zero but not below. It can not reduce your T5 and stock income.