I own a freehold townhouse which is being rented. How do I compute the land? I don't see the price of the land on the documents.

Is air conditioner part of the townhouse (acquired in Mar./14) to compute the CCA?

When keying the CCA in Area C, do I key 50% if the CCA is class 1?

Are upgrades to the townhouse added to the purchase price to compute the CCA?

Do I input the rental income, expenses and CCA data on form T776 separately for myself and my husband?

We did not have a renter for a few months, can I deduct the principal and interest that we paid for those months?


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There is no CCA on land. However, to claim CCA on the building, you need to calculate the cost that applies to it. If the purchase price was a single amount in the deed of sale (as is usually the case) you can use the amounts for land and building from the municipal evaluation in effect at the time of purchase to calculate a ratio, which you can apply to the actual purchase price.

The building includes air-conditioning equipment (other than window units). A window unit would be considered an appliance, in Class 8.

In Area C, you enter the Class #, description, and amounts - the 50% should be automatically applied in Area A.

Upgrades would generally be considered additions to the building during the year they are made, if they fall into the description of what is considered part of the building (see link below). Otherwise they would be additions in another class.


If you are co-owners, make sure you each check Co-ownership and enter your respective percentage of ownership in the identification section for the property. You each input the full amounts of rentals, expenses, and CCA data on the T776, and your respective portions of gross and net income should be automatically calculated and entered on your returns.

Principal payments on a mortgage cannot be deducted as an expense at any time - you are simply reducing an amount payable. If the property was available for rental during the months it was unoccupied, or was undergoing renovations for the purpose of generating rental income, you should be able to deduct interest expense paid during the period.
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