Rentalman
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Posts posted by Rentalman
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This was a useful link I found https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4036/t4036-20e.pdf
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I ended up calling the CRA to ask them some of these questions (1-800-959-8281 then 4, 5). I got most of my questions answered, but I still haven't really figured out where to input some things into the Ufile software. Right now I am just trying to play with entering in different areas of the CCA section and see what comes out in the Tax Return tab under the T776 section.
Window blinds - likely counts as furniture which is a Class 8 CCA if you bought them after the house purchase. If you got them with the house purchase, they would just depreciate along with the house you bought under a Class 1 CCA on the building itself.
CRA also advised that I should get an evaluator come and do an appraisal on the property to determine whether the 80% building/20% land is appropriate or not.
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I have other current expenses that I am counting, but it makes sense to include some that took place during the Renovation Period differently. (When I spoke to the CRA the other day, they said renos made prior to renting it out in order to get it ready to rent, those can be added as a cost of the purchase of the house). So say I spent $500,000 on the purchase, and lets call it 80% for building (agreed, likely its not that -see below) so thats $400,000, then I would add the $30,000 in expense to get it ready to rent. Then that $430,000 gets entered somehow in Ufile but I am not sure where to put all those things.
I wasn't sure how to determine the breakdown between land/building. I am in Kitchener/Waterloo in Ontario and would think the land is a higher proportion. I looked at the MPAC assessment but it doesn't show a breakdown of the land/building for the assessment.
Yes, I keep very detailed records but am still looking for help on how to enter the Reno Period expenses and for the first year (these are the receipts I will need to keep until I sell the house and will want great notes on it).
Another question - What is the accelerated investment Incentive and does it apply to my rental property?
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I have similar questions to NFLSurvivor and have also read through the CRA guide. My wife and I bought a rental house in 2021. Lets say $500,000. Lets say I call this 80% building, 20% land. I paid $10,000 in land transfer/lawyer fees. Before renting it out (ie during the Renovation Period), I completed $30,000 in renovations. How do I fill out CCA? I add a Class 1, leave the opening balance blank, since bought with my wife I select "Partner Level" for whom should the CCA be allocated, enter date of purchase, then what do I put for the rest of the fields?
Please help fill out CCA for Rental Property
in Credits and deductions
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It sounded like the CRA doesn't have a method of determining it themselves and said you should use a professional property advisor. One of the other CRA guys I talked to a bit earlier didn't know, but said he heard some people use the property tax documents that give an assessment. Mine didn't have it broken down that way unfortunately though.