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posted Oct 30, 2019 6:12:18 AM

How do I calculate land value in order to determine building value for CCA purposes. Is there a % allowed. Was it determined at the time I purchased?

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Level 15
Oct 30, 2019 6:12:19 AM

You will need to calculate the percentage of the property purchased that applies to both land and building. There is no "set percentage" as each property is different, of course.

This can usually be found on your Property Tax Assessment, or sometimes you may get a breakdown on the legal documents related to the purchase.

Example: Property Tax Assessment shows 

  • Taxable Value $312,000 (Land - 112,000, Building - 200,000)
  • This calculates out to 36% for the land, and 64% for the building
  • Apply those figures to the actual purchase price
    • Purchased for $400,000 = Land - 144,000, Building - 256,000

This is a great example from CRA of a CCA calculation including expenses;

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/capital-cost-al...