Comments on: Renting Property – A Little Tax Planning Can Go A Long Way http://blog.taxresource.ca/renting-property-a-little-tax-planning-can-go-a-long-way/ Canadian Tax Help & Financial Planning Resources Sun, 12 Feb 2012 02:53:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tax Guyhttp://blog.taxresource.ca/renting-property-a-little-tax-planning-can-go-a-long-way/comment-page-1/#comment-5878 Tax Guy Tue, 30 Mar 2010 02:00:54 +0000 http://blog.taxresource.ca/?p=36#comment-5878 Kevin, I can't say for sure if it makes sense or not to claim CCA. I will say that this is complicated stuff and I would strongly recomend you hire an accountant for the first year or 2 to do your taxes. The cost will save you thousands down the road: Once the accountant does it for a year or two, you can easily do it yourself. In fact, I would suggest you tell the accountant this when you hire them. They will tell you when you should seek their advice.I think many fear seeking professional help more than they should. Kevin,
I can’t say for sure if it makes sense or not to claim CCA. I will say that this is complicated stuff and I would strongly recomend you hire an accountant for the first year or 2 to do your taxes. The cost will save you thousands down the road: Once the accountant does it for a year or two, you can easily do it yourself. In fact, I would suggest you tell the accountant this when you hire them. They will tell you when you should seek their advice.

I think many fear seeking professional help more than they should.

]]> By: Kevinhttp://blog.taxresource.ca/renting-property-a-little-tax-planning-can-go-a-long-way/comment-page-1/#comment-5853 Kevin Fri, 26 Mar 2010 21:41:59 +0000 http://blog.taxresource.ca/?p=36#comment-5853 Boy oh boy, I have been reading the T776 guide and still don't get the CCA thing. One good thing is your note about "it can affect your ability to use the principal residence exemption if you intend to move back into the property".We might do this, so I might as well stay off. We have negligible income from the condo in 2009, so understanding and doing CCA is difficult. As it is I still haven't figured out the Class to use for CCA. The building was built in 1994 and we purchased it in 2007 as a principle residence first and then converted to rental in 2009. This building does not seem to fit the definition for Class 31 and 32 and I don't see any other class defintions in teh guide.I am a do it yourself type of guy and even if I get it done from someone else, prefer to understand atleast at a high level what's being done. At this point I understand the definition of CCA, but am unable to figure out how to use it. Boy oh boy, I have been reading the T776 guide and still don’t get the CCA thing. One good thing is your note about “it can affect your ability to use the principal residence exemption if you intend to move back into the property”.

We might do this, so I might as well stay off. We have negligible income from the condo in 2009, so understanding and doing CCA is difficult. As it is I still haven’t figured out the Class to use for CCA. The building was built in 1994 and we purchased it in 2007 as a principle residence first and then converted to rental in 2009. This building does not seem to fit the definition for Class 31 and 32 and I don’t see any other class defintions in teh guide.

I am a do it yourself type of guy and even if I get it done from someone else, prefer to understand atleast at a high level what’s being done. At this point I understand the definition of CCA, but am unable to figure out how to use it.

]]> By: Tax Guyhttp://blog.taxresource.ca/renting-property-a-little-tax-planning-can-go-a-long-way/comment-page-1/#comment-5681 Tax Guy Sun, 14 Mar 2010 15:11:17 +0000 http://blog.taxresource.ca/?p=36#comment-5681 @Kevin: Using CCA on your rental property will reduce taxable income. On the negative side it cannot be used to create a loss on rental income and it can affect your ability to use the principal residence exemption if you intend to move back into the property. @Kevin: Using CCA on your rental property will reduce taxable income. On the negative side it cannot be used to create a loss on rental income and it can affect your ability to use the principal residence exemption if you intend to move back into the property.

]]> By: Kevinhttp://blog.taxresource.ca/renting-property-a-little-tax-planning-can-go-a-long-way/comment-page-1/#comment-5678 Kevin Sun, 14 Mar 2010 14:41:13 +0000 http://blog.taxresource.ca/?p=36#comment-5678 Can you please elaborate the pros and cons of this CCA for Rental property. We had a condo that was principle residence for 2.5 years. Last year mid, it was converted to a full rental property. I am gathering the income and expense for that now for tax filing this year. I did not think about this CCA to be used for deduction. I have some minor income after deducting expenses. So should I think about using CCA to reduce that income ? Can you please elaborate the pros and cons of this CCA for Rental property.
We had a condo that was principle residence for 2.5 years. Last year mid, it was converted to a full rental property.
I am gathering the income and expense for that now for tax filing this year. I did not think about this CCA to be used for deduction. I have some minor income after deducting expenses. So should I think about using CCA to reduce that income ?

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