Purchased new rental property. I shouldn't claim cca on property but yes for appliances purchased? What about renos - don't list them anywhere?

[EW4]

I purchased a new rental property, a condo townhouse, in December 2015 for $225K.

1) I read that I shouldn't claim CCA on the property because I'll have to pay more tax when I sell it.  Is that right? Does that mean I DO NOT list the purchase price of the property in Turbo Tax under T776 Building Additions.  If I do, it adds it to Area C of T776 and puts an entry in Area A with a 4% depreciation rate.  If I'm supposed to list the property but not claim CCA how do I get it out of Area A?

1b) If I should claim CCA how would I separate the cost of land and property?

2) I did approx. $25K in renos (finished basement, redo kitchen, etc.).  Do I need to list this cost anywhere?  For example do I need to list this as a property addition or add it to the cost of the property, etc.?  These costs spread from Dec 2015 to March 2016 so how does that complicate things?  Rental income started in January 2016.

3) I purchased appliances and furniture for the rental property.  Do I claim this under T776 Equipment and Property Additions?

Thank you for your help.

[Delphision · Accepted solution]

Since you did not rent the condo until January of 2016, you should not list the propert in additions, as you cannot claim CCA when there is no income.  Check the sale agreement.  Since it is a condo, there may not be a land allocation, in which case, you can enter it in 2016.

Keep a spreadsheet, with the cost of the property, any land transfer taxes, legal cost and commissions.  List the renovations by date in a separate section, and then add it all together to get a total.  This will be your starting figure when you are able to claim CCA.  You will enter the total into additions, class 1 @4%.  The appliances and furniture will be added separately as a total as well.  Keep that spreadsheet with your sale documents.

The appliances and furniture will be added as class 8 @20%.

When you sell it, you will pay 50% capital gains on the profit plus there will be a recapture of all of the CCA claimed during the years you claimed it.

[EW4]

Thank you very much.