We purchased a new washing machine for our rental property. Can I claim as rental expense and under CCA? If I claim under CCA, do I claim the price before /after taxes?

[TurboTaxLise]

Yes you may claim it under rental expenses under CCA class 8 - and usually it is claimed with taxes.

Here is a quote directly from the CRA on class 8:

"Class 8 (20%)

Class 8 with a CCA rate of 20% includes certain property that is not included in another class. Examples include furniture, appliances, tools costing $500 or more per tool, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in business.

Photocopiers and electronic communications equipment, such as fax machines and electronic telephone equipment are also included in Class 8. Also include in Class 8 data network infrastructure equipment and systems software for that equipment acquired before March 23, 2004. If acquired after March 22, 2004, include it in Class 46.

Note: If this equipment costs $1,000 or more, you can elect to have it included in a separate class. The CCA rate will not change but a separate CCA deduction can now be calculated for a five-year period. When all the property in the class is disposed of, the UCC is fully deductible as a terminal loss. Any undepreciated capital cost (UCC) balance remaining in the separate class at the end of the fifth year has to be transferred back to the general class in which it would otherwise belong. To make an election, attach a letter to your income tax return for the tax year in which you acquired the property."

If you want to know more here is the link:

Classes of depreciable property

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...

Also, here is CCA explained for further clarification:

Capital Cost Allowance Explained

https://turbotax.intuit.ca/tips/capital-cost-allowance-explained-3952

This may be of help as well if needed:

About rental income and expenses

https://turbotax.community.intuit.ca/replies/2647946

[tommych100]

For appliances $1,000 or more, please let me know how to list it as a separate CCA deduction which can be calculated for a five-year period.

Thanks!

[TurboTaxSusan]

@tommych100 To make this election, attach a letter to your income tax return for the tax year in which you acquired the property. If you are filing your return using NETFILE, you can mail the letter.

[tommych100]

Thank you for the info!

[Jeby1]

So when I claim this,20% of the cost will be considered as expense to that particular year, am I right? What if the income already negative for the year? Will we be benefited by the CCA? Or it will be carry forward to next year?

[TurboTaxSusan]

@Jeby1 20% of your UCC will be available to claim as CCA. But you can't create or increase a rental loss with CCA. TurboTax will automatically calculate the amount of CCA that you can claim for the year, so it might be Zero if you are already in a loss position. You can also choose not to claim CCA for the year. 

If you don't take the full amount of CCA for the year (or only a portion), the remainder will stay in your UCC to use in future years.