Capital cost for CCA

Forum|Forum|5 years ago
April 30, 2021
2 replies
6 views

I'm confused about capital cost addition.

1. If I purchase a rental property (real estate) with a mortgage, I can claim CCA on the total purchase price

since the title has passed to me, correct?

2. What if I purchase an equipment with financing (Total purchase price=$100,000, down payment=$40,000,

Monthly payments=$5,000)? Should I add whatever I have actually paid to capital cost or total purchase

price of $100,000?

ProFile (Canada)

This topic has been closed for replies.

H

Hasib-Ullah

Level 4

Take CCA on $100k, make sure to uncheck the acceleration of CCA, profile has acceleration checked by default. Don't miss out the interest on the financing portion.

G

groobiAuthor

Level 4

Thank you but where can I find the info about acceleration? I reviewed the restrictions of the acceleration

but couldn't find relevant info

D

dogilvie89

Level 5

NEVER depreciate a building--going to get this guy stuck huge on Capital gains

H

Hasib-Ullah

Level 4

For some of my clients claiming CCA is the best options when considering CCB and income tested benefits. Yes, at some point there will be huge recapture but then we can have the client contribute heavily into RRSP that year.

D

dogilvie89

Level 5

glad you are not doing my Taxes :)

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