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Help on claiming rental income on taxes

Anyone care to explain how CCA works?

I have a rental unit in a low rise apartment building. I’ve never claimed CCA and have been renting it out since beginning of 2016.

Hypothetically, if I bought it for 100k and as of 2016, it was assessed (city assessment) at 65k then 2017 is 70k, then what can I claim? What other information do I need in order to properly claim it?

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  1. Call the CRA and ask. Don’t take any advice unless from them. 1-800-959-8281

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  2. CCA is the tax equivalent of depreciation. It doesnt matter how much the property is worth it’s based on what you paid for the property. Basically it’s a deduction on your taxes. The percentage you can claim each year depends on the type of building and the year it was built. It can be 4%, 6%, it 10%. I assume it would most likely be 4 % as it’s not used in manufacturing.

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  3. Maja Black Maja Black says:

    I used to work for h&r block, pm me, I will help for free

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  4. So you’ve been renting it out and haven’t claimed that income?

    Hopefully they hit you with a nice penalty for late filing so that you’ll realize procrastination has consequences.

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  5. Win Chan Win Chan says:

    CCA is just a fancy term for depreciation. For a home like your description it’s 4%/year. If you claim it as soon as you bought the property, then it’s 4% of what you paid. If you start claiming it at a later year that you did not buy the property, then you can either use the city assessment, a market appraisal by an agent or some professional appraiser, or a list of similar properties and drawing an approximate value based on dollar/sq ft. Using the city assessment would be the easiest but worst idea, as city assessments are usually lower than actual value – so (a) you’d pay more capital gains at sale, and (b) you wouldn’t be claiming as much as you actually could.

    In your example, you’d be claiming 4% of the 2017 market value of the condo, or what the city assessment says. City assessment is the easiest but worst idea since when you sell, you’d pay capital gains on what you sold for minus what you claimed here (a number lower than actual current value).

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  6. City of Edmonton assessments aren’t proper assessments. They don’t indicate the value of your home

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