Can i claim CCA ON rental PROPERTY if CCA is more than Rent?

[fuzzy · Accepted solution]

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

[fuzzy]

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

[TurboTaxEsther]

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

[TurboTaxEsther]

That is true, you can claim only enough cca to bring your rental income to zero. 

Thanks for pointing that out Fuzzy. 

[nomanfahmi]

What if my income consists of T5, stocks, and rent income?

[TurboTaxEsther]

The CCA can be used to bring your RENTAL income to zero but not below. It can not reduce your T5 and stock income.

[nomanfahmi]

What if my income consists of T5, stocks, and rent income?