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New Member

I'm self employed, to reduce my tax bill I would like to take a CCA on my home re: business-use-home > 25% class 1, 4% retro from 2014, would this be allowed?

 This is the calculation I'm using to get CCA        

225,000.00      9,000.00 216000 2014         2,250.00       
216,000.00      8,640.00 207360 2015         2,160.00       
207,360.00      8,294.40 199065.6    2016      2,073.60   Total CCA 6,483.60
Am I doing this correctly?
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Moderator

I'm self employed, to reduce my tax bill I would like to take a CCA on my home re: business-use-home > 25% class 1, 4% retro from 2014, would this be allowed?

No, you cannot claim "retro" CCA. If you have never claimed CCA on your home, you calculate it as the UCC amount being the amount when you made the "addition" or first started using it for business purposes.

So your claim in 2018 would be 4% of the original price (225,000.00) times 25%.

View solution in original post

3 Replies
Highlighted
Moderator

I'm self employed, to reduce my tax bill I would like to take a CCA on my home re: business-use-home > 25% class 1, 4% retro from 2014, would this be allowed?

No, you cannot claim "retro" CCA. If you have never claimed CCA on your home, you calculate it as the UCC amount being the amount when you made the "addition" or first started using it for business purposes.

So your claim in 2018 would be 4% of the original price (225,000.00) times 25%.

View solution in original post

Highlighted
New Member

I'm self employed, to reduce my tax bill I would like to take a CCA on my home re: business-use-home > 25% class 1, 4% retro from 2014, would this be allowed?

Thank you.
Highlighted
New Member

I'm self employed, to reduce my tax bill I would like to take a CCA on my home re: business-use-home > 25% class 1, 4% retro from 2014, would this be allowed?

There are some points to consider such as having to pay taxes on the amounts you used as CCA if you ever sell the house. Most people would never claim CCA on their home since value tends to increase on homes you could be looking at some serious taxes due not just on the amounts you claimed but the increased value on those amounts in the future. Best talk to an accountant about that. its usually not worth the future possible ramifications