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New Member
posted Apr 7, 2024 9:24:35 PM

What is the implication of taking CCA on rental property?

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1 Replies
Moderator
Apr 8, 2024 6:29:07 AM

Your CCA is based on the type of rental property and when you obtained it. To determine the amount, you would likely use the “declining balance method.” In this case, your CCA amount is based on any allowance claimed in prior years subtracted from the capital cost of the property. As you claim the CCA, in subsequent years your remaining balance declines. You can claim any amount of your allowance for the year—you do not have to take the full amount all at once. For example, you might want to hold off on claiming your CCA if you don’t owe any taxes for the year since taking the allowance lowers the amount you’re entitled to in upcoming years.

 

Here is a great TurboTax article that will help: Dos and Dont's CCA for Rental Property.

 

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