I have done alot of research to figure out the mechanics of CCA and short of actually going to an accountant to figure this out, I have not been able to decide if it is worth it to claim CCA due to the fact that there may be recapture. I figure the next best thing is to claim CCA on furniture or appliance additions only (not to take it on the building) because they will eventually wear out and I can clear out UCC and take a terminal loss for that class.
Can you provide advice on if it is worth the work to calculate and claim CCA as it is optional? What questions or factors should I be considering? Is it valid to claim CCA only things that will eventually be worn out to avoid recapture like the furniture example?
I rent out a few rooms in my one home where it is also my primary residence. This is not for business.
Especially if it is part of your primary residence that you are renting out...do not claim CCA on the building. If you do, then you lose the primary residence exemption if and when you sell your home, and then would have to pay tax on any capital gains realized from the sale.
For any appliances furniture etc, sure make the claim.
Especially if it is part of your primary residence that you are renting out...do not claim CCA on the building. If you do, then you lose the primary residence exemption if and when you sell your home, and then would have to pay tax on any capital gains realized from the sale.
For any appliances furniture etc, sure make the claim.
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