How To Reduce Taxes and Keep More Cash In Your Pocket using Capital Cost Allowance(CCA)
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3 жыл бұрынAs real estate investors, claiming Capital cost allowance (CCA) can help you reduce taxes and keep more cash in your pocket, but it can be a complicated concept.
That’s why I broke down everything you need to know about Capital Cost Allowance deductions in today’s video.
I also share the tax rules around claiming CCA, how to calculate CCA and three special criteria to determine if you should claim CCA or not.
Comment with any questions or thoughts below once you’ve watched the video. I’ll respond as soon as I can.
#RealEstateTaxTips #RealEstateInvestors #CanadianInvesting #deduction #CCA #capitalcostallowance #taxdeduction #taxsaving #CRA
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DISCLAIMER:
Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your own legal and tax advisors to ensure you get the advice you personalized for you.
The information contained in this video is for general information purposes only.
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@maxd2491 Жыл бұрын
Thank you! Very informative
@dick-fungszeto4661 Жыл бұрын
Very clear explanation with examples on whether to claim CCA. Thanks a lot Cherry!
@RealEstateTaxTips Жыл бұрын
Glad it was helpful
@hez5714 8 ай бұрын
im in the process of getting my real estate license in the ottawa area and cca is one of my topics right now . this video really helped me understand it more thank you
@RealEstateTaxTips 8 ай бұрын
GLad you thank it helpful
@imoul087 2 жыл бұрын
Great video from Real Estate Tax Tips...clarified many of my queries. thanks for this
@RealEstateTaxTips 2 жыл бұрын
Glad it was helpful!
@fi_high 3 жыл бұрын
Great tips, Cherry!
@RealEstateTaxTips 3 жыл бұрын
Glad it was helpful!
@riverplateequities5444 2 ай бұрын
Just discovered your videos, thank you, they are great!
@RealEstateTaxTips 2 ай бұрын
Glad you like them!
@bryancheung7437 2 жыл бұрын
Thanks a lot. U cleared my confusion. Super like
@RealEstateTaxTips 2 жыл бұрын
Glad it helps
@markbotelho9630 2 жыл бұрын
Great video thank you for sharing
@RealEstateTaxTips 2 жыл бұрын
Thanks for watching!
@samaygrover4209 2 жыл бұрын
great information, thanks
@RealEstateTaxTips 2 жыл бұрын
Glad it was helpful!
@bashirpopal6259 2 ай бұрын
Great video. Can you please give a clear clarifications on the DIEP eligibility for business vehicle?
@shoujie 2 ай бұрын
It's a great presentation. There is a question about CCA: That's saying I have 100K personal income while I also invest a property. I claimed the CCA during the time I have the income. Next year, I will be retired and I know I will be soon with a lower income from the CPP, OAS, RRSP, etc. In this case, how do I deal with the CCA? Can you make another video about it, or answer here? much appreciated.😀💌
@JaimeVan-lt2os 3 ай бұрын
Your tutorial on CCA is on the building or property which was very helpful and there is a chance I will move into the rental in the future, so based on your advice in this tutorial, I will NOT claim CCA on the property. However, can I still claim CCA on the improvements I have made to the rental property, like new appliances, a new murphy desk/ bed combo and new quartz counters with new sinks?
@dashap9288 2 ай бұрын
You have great presentation skills!
@RealEstateTaxTips 2 ай бұрын
Thank you! Cheers!
@KD-mz5xv 2 жыл бұрын
great info
@RealEstateTaxTips 2 жыл бұрын
Glad you think so!
@tetracongo7669 4 ай бұрын
I have a few questions. Can we claim CCA on foreign rental property? is it still use form T776 to report the foreign rental property if it rental income has already been taxed in Australia? or should I just put the net Australian rental in in the foreign income section (line 13000) and claim foreign tax credit using T2209 and put the FTC amount in 40500
@pixelabstract1571 4 ай бұрын
Hi. Great Video. What if the price dropped and the property was sold at lower price. The same house if it was sold for $40,000 in 4 years, how the calculation will look like?
@sayazkou 2 ай бұрын
Thanks for sharing. What would be the case if you choose to claim CCA, but you keep the property long enough until there is no more room to claim CCA? Also, is there a maximum time to recapture CCA assuming you don't sale the property?
@vamsiprasanth 8 ай бұрын
If i make a basement apartment for rental property, currently unfinished basement, does it come under cca and not direct expense ?
@nrkrspatel 4 ай бұрын
Hello, this video is very informative. However, there is no mention of whether one can defer CCA of the earlier years of the rental or just for the current year? If I bought a property before 5 years and never used CCA for any year then can I claim CCA for that property for last 5 years? I.e. 4% of property price x 5 years? Pls let me know. Thank you in advance
@MichaelBernardo 2 жыл бұрын
Excellent video. I have not claimed any CCA for the past 5 years. Can those be carried forward to this year?
@RealEstateTaxTips 2 жыл бұрын
It is carried forward, as the amount you can claim is calculated as the undepreciated amount.
@danb.4128 2 жыл бұрын
Hello Cherry, thanks for these great, informative videos! We own our home and have employment income over 100k each and we find useful to claim yearly CCA on a smaller rental property we bought. As we will eventually sell our present residence and move into our present rental do you find a good strategy in sheltering capital gain from deemed selling by using our RRSP room to contribute out of the amount we get from residence selling? We anticipate to be on smaller tax bracket in retirement. For FMV purpose ,by using the service of a certified appraiser would be acceptable to CRA? Thank you again
@RealEstateTaxTips 2 жыл бұрын
Hi Dan! Although I advise my clients to come and sit in for a personalized consult, here's my 2 cents... Independent licensed appraisal report should be sufficient to substantiate your value at the time the change in use happens. RRSP is likely the only option available to lower your capital gain tax on change in use. Good luck. Now again, I would advise you to sit with your personal real estate tax accountant, Or for any questions or consultation with us, you can contact our office at 416-548-4228 or email us at admin@cccpa.ca. You can even book a consult with us here. retts.as.me/
@shoaibb8862 2 жыл бұрын
Great videos cherry! I find them very informative ….I did have a question …the 4% cca applies to the building only if I’m correct …how do you distinguish between the land it sits on…for eg if you purchase a property for 800k …would you use this full amount to calculate cca or some reasonable percentage rate Like 70% is building portion only so $560k …hope you can help !
@devarunb 2 жыл бұрын
Hi Shoaib. I have the exact same question. Were you able to find an answer to it?
@RealEstateTaxTips 2 жыл бұрын
Hi Shoaib, thanks for reaching out! Unfortunately this isn't the right platform where I would be able to advise you about your personalized situation. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca and we will be sure to take care of you. Thanks!
@24hourstraveler81 Жыл бұрын
HI Cherry , great video. My question to you is: If I made capital improvements to my rental property, do I create a separate addition under class 1 (4%) with the amount a spent on the improvements?
@RealEstateTaxTips Жыл бұрын
It can be the same class as your building
@devarunb 2 жыл бұрын
Hi Cherry, Thankyou so much for your videos. I have learnt so much from them. I had a question about the CCA and would be grateful if you could reply: I bought my townhome for around $500k. So I can claim 4% of that amount? I read somewhere that we should not include the cost of the land and only include the cost of the building? How do we calculate the cost of the building?
@RealEstateTaxTips 2 жыл бұрын
Hi Devarun, Thanks for reaching out! Unfortunately this isn't the right platform where I would be able to advise you about your personalized situation. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca and we will be sure to take care of you. Thanks!
@mjgumayagay2041 Ай бұрын
If I plan to keep the property forever, do I have to pay the taxes on recapture CCA?
@christopherkloosterman321 Жыл бұрын
Great tips Cherry! I have a question regarding using principle residence exception, and then possibly combining that with CCA. For example, we own the home, and rent out our basement (is a legal suite). To my understanding, as we occupy the residence as our primary home, we’d qualify for the principle residence exception upon sale. However, how would the portion that we also rent out (approximately 40% by square footage of the home for the basement), be factored in if we decided to take CCA? I’m under the impression that we cannot claim CCA on exclusive principle residences, but rather rental properties. Can we only use the principle residence exemption for the square footage of what WE occupy, and the CCA would be set at the 40% we earmark for tenants/rental income? Thanks again Cherry, any insight is greatly appreciated!
@RealEstateTaxTips Жыл бұрын
CCA shouldn't be claim on your primary residence to preserve the primary residence exemption
@shuohan9561 Жыл бұрын
Thanks Cherry. If I bought a TV for the rental property and claim it as CCA (which I think it falls in Class 8 with rate of 20%), when I sell the property, my plan is to keep the TV for my personal use. Then do I need to do anything for the CCA recapture for the TV (or anything similar in class 8)
@RealEstateTaxTips Жыл бұрын
By that time, your TV probably would be worthless...given the trajectory of TV prices these days.... You would have been deemed to disposed it at fair market value and recapture/terminal loss is calculated at that point
@MrGipsonraj 3 ай бұрын
Great video and excellent explanation. Just wondering if I claim CCA for the current year then do I have to claim every following years? Thanks
@RealEstateTaxTips 2 ай бұрын
Claiming CCA is at your discretion and in some instances cannot be claimed to create a loss. For a more in depth discussion I recommend you schedule a meeting with my team.
@bringadinga7362 2 жыл бұрын
Thank you so much for the video.I did not know about CAA before,but was renting my investment property for last 3 years.If I want to claim CCA starting this year then can I consider my UCC as amount that i had paid as purchase price of house? Secondly how do i know the cost of the building, as Purchase agreement has total cost of Property.Is there a thumb rule?
@RealEstateTaxTips 2 жыл бұрын
Hi! I'm glad you found this video helpful. As every case in unique, I'd advise to you to sit down with a professional to help you with all your real estate tax concerns. You can come in or phone consult with me and my team. For any personalized consultation, we advise that you book an appointment. Feel free to contact us at 416-548-4228 or email us at admin@cccpa.ca.
@imoutbye 2 жыл бұрын
This is great. Thank you. I moved in to my rental which is a duplex over a year ago. So it’s my primary residence but I have tenants as well. Would I be affected by option 3 even if I’m still renting part of it out? Thanks
@imoutbye 2 жыл бұрын
I could really use that money to fix it up right now.
@RealEstateTaxTips 2 жыл бұрын
Hi Mark, Unfortunately this isn't the right platform where I would be able to advise you about your personalized situation. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca and we will be sure to take care of you. Thanks!
@sawsandiab7335 Жыл бұрын
hi , thank you for the video. I am do the taxes of my son. He bought the house in july 2020. we can to claim the ucc this year. can he do that. do we have to apply the 50% rules or can he claim it totallly. thanks for all the help
@RealEstateTaxTips Жыл бұрын
Yes you can claim the CCA as it is not the year of purchase, 50% rule only applies to year of purchase
@jennywen7468 3 ай бұрын
Hi Cherry, thank you for your tax tips and examples. I was told by a friend that my new investment which is a Condo is classified differently than a house? Can you advise?
@RealEstateTaxTips 3 ай бұрын
I am not sure what your friend is referring to. It’s best you check with her. If you have specific tax questions though, our team is happy to assist.
@yeonsuchoi1721 2 жыл бұрын
Thank you so much for great video. Can an individual also claim CCA on a personal vehicle for the portion of use to manage rental property?
@RealEstateTaxTips 2 жыл бұрын
Absolutely. Like you said, an individual can only claim the portion use to manage rental property. This means that you would need to have a logbook to keep track of your mileage.
@yeonsuchoi1721 2 жыл бұрын
@@RealEstateTaxTips great. Thank you!
@radosuites7058 2 жыл бұрын
@@RealEstateTaxTips does ‘recapture’ also apply to CCA on vehicles ?
@RealEstateTaxTips 2 жыл бұрын
@@radosuites7058 It depends on the type of vehicles you are talking about. Certain type of vehicle class is not subject to recapture.
@ziaddaya865 2 жыл бұрын
Great video. What you recommend if we beleive our child will eventually live in our 1 bedroom condo rental property in the future? If we claim CCA for years and our child moves in, would that be deemed as a sale (triggering capital gains and recapture)? Thanks
@RealEstateTaxTips 2 жыл бұрын
Yes if you claim HST, sad but that would be the case.
@Albertaboy76 2 жыл бұрын
Hi Cherry, if I purchased the property and lived in it for 7 years then turned the property into a rental, what would I use as the purchase price to apply the 4% to?
@RealEstateTaxTips 2 жыл бұрын
Hi Colin, Thanks for being here! Now, every individual's situation is different. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca
@therizojosesincanada5970 3 ай бұрын
Hi there, I’m not claiming CCA on my rental property. However recently I made some few renovations and the total amount came to $18,000.. Can I just put these costs as outright exoense against my rental income for the year? 7:41
@RealEstateTaxTips 2 ай бұрын
Renovations are considered a Capital Cost and get added to the value of the asset, you will get the benefit of them on the sale of the asset. If you claim the renovation as an expense there is a high probability that CRA will review your claim and reassess your return. I would recommend you schedule a call with my team and they can answer your questions in more detail.
@bestsatisfyingasmrslime6802 3 жыл бұрын
Great information! Can I claim CCA on the appliance like fridge, stove, washer dryer etc? And will that amortization recaputured when I sell the rental property?
@RealEstateTaxTips 3 жыл бұрын
Yes you can claim CCA on the appliances as well. Recapture is based on the fair market value of these appliances at the time when you sell your property. If the fmv is close to the undepreciated capital cost, you might not have a recapture.
@bestsatisfyingasmrslime6802 3 жыл бұрын
Thanks for your response! One more question, how to determine the fair value of appliance? How does CRA determine the fair value of appliances？
@RealEstateTaxTips 3 жыл бұрын
@@bestsatisfyingasmrslime6802 I don't think we have ever gone done the rabbit hole of finding the fair market value of the appliances. Technically speaking, it is the price that someone is willing to purchase from you.
@bestsatisfyingasmrslime6802 3 жыл бұрын
@@RealEstateTaxTips Thanks!
@scottprimrose6966 Жыл бұрын
Nice explanation of rental scenario but would you be able to do this CCA for small business equipment (e.g. lawn tractors, tools, water pumps, docks etc)? Is it worth doing CCA deduction on these items? If you never sell these items then it seems to be worth it since there will never be a recature or capital gains on these relatively small items.
@RealEstateTaxTips Жыл бұрын
Absolutely 100% worth it. Always claim CCA, unless you have losses every year and you are not expecting to turn a profit in the near future.
@scottprimrose6966 Жыл бұрын
@@RealEstateTaxTips But it's just a tax deferral as far as I know and when the business is sold or closed down don't they (CRA) add up all the CCA you've received and consider those capital gains which you have to claim as income?
@TungaTube12 2 жыл бұрын
Hi Cherry, thank you for your very informative videos! I have a couple of questions. 1. Does the purchase price include the land fee? If yes, then how do we know what portion would be the building value? 2. Can you claim 4 % CCA every year if you not planning to sell it at all. Thanks a lot in advance.
@RealEstateTaxTips 2 жыл бұрын
Hi Tunga! Thanks for watching. Not sure what you meant by land fee? Land transfer tax? For sure. You're supposed to allocate a portion of your purchase price to land and a portion to building based on fair market value. You can claim 4% CCA annually, provided that you have the rental income to justify the claim. You can't claim CCA to create a rental loss or a bigger loss.
@TungaTube12 2 жыл бұрын
Thank you so much Cherry for your reply. Sorry for the confusion. I wanted to know which portion of the purchase price goes to the building price. How do you determine that? Many thanks!
@devarunb 2 жыл бұрын
Hi @@TungaTube12, I have the exact same question. Were you able to find an answer to it?
@TungaTube12 2 жыл бұрын
@@devarunb Hi Devarun, Nope. But I saw a similar question in the following video's comment. kzfaq.info/get/bejne/oNWRjMapvsrGeJc.html
@marko5588 11 ай бұрын
@@RealEstateTaxTips in the example in the video, you would be able to claim $20000 as CCA per year? Until all of 500k is written off?
@moneytalkz672 Жыл бұрын
Hello Cherry, you should provide these type of videos for the CRA guidelines as I tried reading them and it was information overload. My question is for my daughter. She purchased her Condo in 2014 and lived in it till 2021. She rented for all of 2022 and had net income of $6700 after expenses. She will be selling it in 2023. She paid about 10% more then she will get so will have a capital loss. I was thinking of using CCA for her 2022 tax return to reduce her taxes by this $6700 net gain. If she sells at a loss in 2023, how will this affect her income for the 2023 tax year? Since she will have owned the property for 9 years and rented it for about 1.5 years, will she need to proportionally use 1.5 years of the 9 years to calculate the capital loss? Thank you.
@RealEstateTaxTips Жыл бұрын
Primary residence exemption average calculation would be applicable in certain scenarios and not others. It really goes back to her situation as well. We had claimed capital losses - in certain circumstances, terminal losses. We had also done average calculation in other situation. It sounds like you have a very specific situation - and in that case, I suggest you to seek out proper advice from a qualified accountant. If you don't have any accountant you currently work with, you're welcome to contact my team at 416-548-4228 or email us at admin@cccpa.ca
@inverroy 2 жыл бұрын
Hi Cherry. Thanks for the video in CCA. Does the decision about taking CCA also get impacted if you do a BRRR project where there are significant renovation costs on top of the purchase price? Thank you
@RealEstateTaxTips 2 жыл бұрын
The significant renovation is added to the cost of the building. When you calculate CCA, it is calculated based on the purchase price plus the renovation amount. Again, I mentioned the factors that I would normally consider when claiming CCA in the video. BRRR project isn't one of them generally.
@jj-ry8xv 2 жыл бұрын
Thanks for the video! I have a Bitcoin miner that cost about 15000CAD when purchased. Unlike a Macbook Pro, this equipment is "Application-Specific", whose sole purpose is to mine bitcoin and nothing else. therefore, it is not a "general-purpose electronic data processing equipment" mentioned in class 50. Furthermore, due to the nature of bitcoin mining, such equipment may not be profitable after a few years and thus become worthless. so what Capital cost allowance (CCA) class should a bitcoin miner belong to?
@RealEstateTaxTips 2 жыл бұрын
Hi Ethan, thanks for reaching out! Unfortunately this isn't the right platform where I would be able to advise you about your personalized situation. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca and we will be sure to take care of you. Thanks!
@jasondurant7335 3 жыл бұрын
Great video Cherry! I am brand new to real estate investing, is there a way a parent can one time gift their child a home? I have been told that there is an allowance to pass on a residence to a son or daughter?
@RealEstateTaxTips 3 жыл бұрын
Hi Jason, there is no allowance to pass on a residence to a son if you live in Canada. However, it does not mean that your parents cannot gift you their residence tax free. Most of the time, if they are living in the residence, when the ownership is transferred to you, the capital gain on the property would have been sheltered by primary residence exemption. Now, every situation is different. If it is a rental, it might be more complicated. Be sure to consult with someone who has expertise in this area.
@StevoSun Жыл бұрын
When you calculate CCA do you do it on a declining balance on the entire class? Or do you track it on individual properties? Example - if there are multiple properties do you claim CCA on the total class? What happens when you sell one property? How do you calculate recapture/terminal loss?
@RealEstateTaxTips Жыл бұрын
Class 1 requires tracking of individual property... separate asset for each property and Class 1 is on a declining basis
@StevoSun Жыл бұрын
@@RealEstateTaxTips thanks for the response, so does this mean your CCA is tracked against individual properties? For example - if there are multiple properties, is the CCA limited to each property individually (ie. against the rental income each property generated individually)? Also this sounds like you have a declining balance for each property you have to track?
@HardeepsinghBedi29 Жыл бұрын
Hi i have Question about undepreciated value lets say i bought property in year 2011 for $400,000 and converted it into rental 2013 and appraised value was $ 450,000 but now market value is $800,000 what would be my undepreciated value , i never claimed CCA before thinking of doing it now Thanks
@RealEstateTaxTips Жыл бұрын
Ha, that's a very tough question to answer over a message. It's actually half of your appreciation at the time when its converted to rental plus the original cost of acquisition - but yes, it doesn't quite make sense but that's the rule.
@adriand-fq3qf Жыл бұрын
Hello Cherry, what if instead or selling an investment property that carries a CCA and pocket the cash, to instead re-invest it all into a different rental property? Would the CCA get carried into the new property, or would you have to pay the CCA when selling the corresponding property regardless?
@RealEstateTaxTips Жыл бұрын
Recapture income is calculated based on the amount of CCA you've claimed over the years. Recapture income is treated similar to rental income, so you will be able to use other rental properties' CCA to offset against the recapture income, to the extent that you are still reporting "income", not a loss.
@adriand-fq3qf Жыл бұрын
@@RealEstateTaxTips I see, so it's practically possible to keep pushing/ deferring the CCA for the future by associating it with the new property that replaced the original property where the CCA was associated with? I watched a lot of general videos in the real estate category and yours are so well done and informative. They really stand out above the rest. Thank you for sharing this valuable information.
@RealEstateTaxTips Жыл бұрын
@@adriand-fq3qf not perfect but yes some of it can be offset
@adriand-fq3qf Жыл бұрын
Wonderful. Thank you Cherry
@DLDREALESTATE 3 жыл бұрын
if you claim the rental income and expenses each year then you can't claim CCA? If you claim CCA, are you also reporting rental income and expenses?
@RealEstateTaxTips 3 жыл бұрын
In this particular video, I'm referring to buying rental properties. CCA concept can be applicable to all small business owners as well. If they buy office, equipment, vehicles, similar CCA regime is applied with slight different rules. If you are reporting rental income and expenses and still resulting in net rental income, you can use CCA on building to defer taxes. Hope it helps.
@viacheslavsavateev6522 Жыл бұрын
If you claim CCA for a rental and later move there - you can defer deemed disposition. Can you defer CCA recapture too? Even if you move into the rental, could you still say that your primary residence is a different property ?
@RealEstateTaxTips Жыл бұрын
If you claim CCA and moved in subsequently, you have deemed disposition at the time of moving in. Hope this clarifies.
@viacheslavsavateev6522 Жыл бұрын
@@RealEstateTaxTips thanks. If I purchase a condo unit for $500k- how do I find out what portion I paid for land and what portion I paid for a building ?
@RealEstateTaxTips Жыл бұрын
@@viacheslavsavateev6522 a question for the appraiser. For CCA deduction purpose, it goes to what you think the value is as well and as long as the same proportion is allocated and plus you are selling for a gain… it shouldn’t be an issue
@raczyk Жыл бұрын
I do uber eats on an ebike and car. Half my income is from the ebike. Is there a method to writing off (CCA) the ebike over time? The bike and accessories cost me $5000. Thank you.
@RealEstateTaxTips Жыл бұрын
Absolutely - make sure you prorate it based on your personal use vs. business use and deduct it accordingly as equipment.
@raczyk Жыл бұрын
@RealEstateTaxTips Do you know which class of depreciation the eBike would fall? Don't see it specified in any of the classes. Also how would you keep track of how much the ebike is used for business vs pleasure? The ebike has no odometer unlike a car.
@atmanvyas298 2 жыл бұрын
Hi cherry , can person write off vehicle under rental income?
@RealEstateTaxTips 2 жыл бұрын
Absolutely. Provided that you use your vehicle to run your rental portfolio and have a documented autolog and all relevant receipts and contracts
@atmanvyas298 2 жыл бұрын
@@RealEstateTaxTips, Thank you Cherry.
@Okikor1 Жыл бұрын
If you claim CCA for 2nd year, do you have to claim it for subsequent years?
@RealEstateTaxTips Жыл бұрын
No. it's an optional claim annually.
@hll8803 2 жыл бұрын
Great Video! You said CRA allows maximum 4% to be claimed on CCA. Is that lifetime, or 4% per year? On the example in the video, you purchased a house for $500,000. 4% is equal to 20K. the 20 K was already claimed in the first 3 years. What if in this same scenario, you did not sell in year 4, but kept the property for the next 30 years or longer. It means after year 3 in which you used up the max $20,000, you would no longer be able to claim CCA after year 4 for ever?
@AW-gj4ji 2 жыл бұрын
I'm also interested in this question. The CCA isn't all that useful if its only 4% once.
@RealEstateTaxTips 2 жыл бұрын
4% is claimed on the undepreciated amount. If your rental property costed you $500K, in year 1, you claimed 20K - assuming that you have enough rental income to claim the full $20K. In year 2, the amount you can claim is ($500K - $20K) x 4%, up to the maximum of net rental income you're reporting. Hope this helps.
@AW-gj4ji 2 жыл бұрын
@@RealEstateTaxTips Clear and concise! Thanks for the clarification!
@AW-gj4ji Жыл бұрын
that 4% is it per year or its for the whole duration of your ownership for that property?
@RealEstateTaxTips Жыл бұрын
4% on the undepreciated amount annually.
@tkong7275 2 жыл бұрын
Hi Cherry, thanks so much for this informative videos! Could you advise me how to give my rental property as a gift to my child? Also, I bought my house in December of 2021.I do not need CCA to deduct rental income(not rent out yet), could I start CCA for 2022? Looking forward for your reply. :):)
@RealEstateTaxTips 2 жыл бұрын
Hi there! Thanks for watching. Gifting to your children would trigger deemed disposition at fair market value of the property at the time when you decide to gift it. You have flexibility to claim CCA in 2022 assuming you have net rental income.
@Ram78979 2 жыл бұрын
What if I wanted to gift or change the title to my adult child?
@RealEstateTaxTips 2 жыл бұрын
That's disposition at fair market value. You have to pay capital gain tax based on fair market value of the property less the adjusted cost base of the property.
@TruePersianPrince 6 ай бұрын
Man that 50% captial income is just too much.
@RealEstateTaxTips 6 ай бұрын
50% of your total gain = your taxable capital gain. In Canada, your highest marginal tax rate is around 50% (a different 50%). In reality, you're paying 25% tax on your total gain. Hope that clarifies what you are referring to.
@Mr.Misconduct Жыл бұрын
Is there a book that illustrates what can be a write-off based on the type of business?? Lol child proof it
@RealEstateTaxTips Жыл бұрын
We do have two books published on Amazon.... but to write a book on what you can write off based on the type of business, it would be a huge undertaking. Feel free to check us out on Amazon.ca and search Cherry Chan
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