Vinyl Siding cost as depreciation in Rental Expenses T776 Capital Cost Allowance (CCA) for how many years?

[dubnikov]

I made major renovation such as changing Vinyl Siding.
For how many years I need to declare its cost as depreciation in Rental Expenses T776 Capital Cost Allowance (CCA)?

[TurboTaxJeffrey · Accepted solution]

You can't depreciate the vinyl siding itself.   It increases the value of the building and therefore you would have to depreciate the cost of the building itself.  I believe most would not recommend this as it can create a recapture income at such time as you sell it however should you choose to do so you would separate the cost of the building from the land, add the cost of renovations, and the depreciation class would be class 1.

[dubnikov]

Thank you Jeffrey!!!
But how come old tap replacement I can count as rental expense without fear but replacement of rotten wood siding (zero chances to generate income with it) consider as recapture income. Sounds like unfair CRA.

[TurboTaxJeffrey]

Replacing a tap is a current expense...upgrading the value is a capital expense.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/rntl/crcp-eng.html

[dubnikov]

And there no chance to convince CRA that in my case siding is not upgrade but necessary replacement?

[TurboTaxJeffrey]

That is between you and the CRA.

[dubnikov]

LOL.
Thank you Jeffrey again.
What is a name of your service bookkeeping company or how can I reach you?

[TurboTaxJeffrey]

While I appreciate your offer, it would be unethical for me to accept clients through this forum.  However you may wish to use the Proreview service.  Whether it's myself or any of my colleagues you would know your return was accurate and to your best benefit.

[dubnikov]

You mean https://turbotax.intuit.ca/tax-software/pro-review.jsp , correct?

[TurboTaxJeffrey]

Yes.