1. To determine if HVAC install and attic repair are CCA)
To determine if Current expenses or capital expenses ie CapEx or operating expense :
A current expense is one that generally recurs after a short period. For example, the cost of painting the exterior of a wooden property is a current expense.
A capital expense generally gives a lasting benefit or advantage. For example, the cost of putting vinyl siding on the exterior walls of a wooden property is a capital expense. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/current-expenses-capital-expenses.html
2. Here is an example of a CCA addition :
Description of the asset:MyRentalBldg-
Opening balance of the undepreciated capital cost $100,000.00
To whom the CCA should be allocated < - - -LEAVE AS NULL
Portion (%) of CCA used for business or employment < - - -LEAVE AS NULL
Purchase date of the property 01-01-2019
ACB of the depreciable capital property in this class $100,000.00
Limit to the CCA of this class
Description and amount of capital additions (other than AIIP): < - - -SELECT THIS ONE
[Aluminum Siding][ $10,000.00] < - - - ENTER addition
Description and amount of capital additions of AIIP:
Application of half-year rule to current year additionsYes
T776 – p3 Area A – ½ year rule applied CHECK iF ok
Is it possible to declare CCA addition to the property but to never apply the credit it when filling in the taxes so we do not have to repay back the government when we sell the property in the future? or that should be only done when we dispose the building.
CCA and ACB for Rental Property
in Credits and deductions
Posted
Is it possible to declare CCA addition to the property but to never apply the credit it when filling in the taxes so we do not have to repay back the government when we sell the property in the future? or that should be only done when we dispose the building.