PeteH Posted February 21, 2023 Report Share Posted February 21, 2023 Hi, Was wondering how to determine the initial CCA value for a rental value (ie. building portion of the purchase price, excluding land value). Tried looking up the valuation on property tax but Ontario property tax bills doesn't split land and building into separate valuations? Is there a standard proportion being use for residential rental properties? Also, at future disposition, I suppose one needs to split the sale proceeds (into land and building), and only take UCC LESS the land portion of the proceeds to find out the recapture amount to be added to that year's income? Thanks, Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 21, 2023 Report Share Posted February 21, 2023 Hello PeteH, You could get an appraisal. Here is a link for the association in Ontario https://www.aicanada.ca/province-ontario/ontario/ Quote Link to comment Share on other sites More sharing options...
PeteH Posted February 21, 2023 Author Report Share Posted February 21, 2023 An appraisal at the time of acquisition and at disposal for the building portion of the property ? Thanks again, Quote Link to comment Share on other sites More sharing options...
Geo123 Posted February 22, 2023 Report Share Posted February 22, 2023 Hello PeteH, You would need both the acquisition cost and disposal amount FMV (Fair Market Value)/ appraisal amount Quote Link to comment Share on other sites More sharing options...
BLSM Posted February 23, 2023 Report Share Posted February 23, 2023 Hi Pete Appraisals are pricey, so what I would do to start is, call the property assessment office. Even if they don't give a breakdown, I'd be surprised if they don't have one in their process. After all, as the building ages, it drops in value, while the land may go up. In BC, they do give a breakdown, but I call the assessment office every year to check my land value. The reason for that is, we have farm status, which dramatically lowers the land value that we are taxed on. I call, and they give me the actual value for each of our properties. Brenda Quote Link to comment Share on other sites More sharing options...
PeteH Posted February 23, 2023 Author Report Share Posted February 23, 2023 1 hour ago, BLSM said: Hi Pete Appraisals are pricey, so what I would do to start is, call the property assessment office. Even if they don't give a breakdown, I'd be surprised if they don't have one in their process. After all, as the building ages, it drops in value, while the land may go up. In BC, they do give a breakdown, but I call the assessment office every year to check my land value. The reason for that is, we have farm status, which dramatically lowers the land value that we are taxed on. I call, and they give me the actual value for each of our properties. Brenda Hi Brenda, Thanks a lot for the advice. I will give the municipal office which issues annual property tax bills to find out 👍 Quote Link to comment Share on other sites More sharing options...
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