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?

Answer

1 person found this helpful

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.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/cptl/dprcbl-eng.html#Class8

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.
Was this answer helpful? Yes No
Original
rhino , emptor criticus

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community