At the end of the current year, Fred owned two residential rental properties. Rental property #1 cost $125,000 (land $50,000; building $75,000) and at the close of last year had a UCC of $64,000. Rental property #2 was acquired in the current year for $210,000 (land $80,000; building $130,000). Revenue and expenses for the rental properties during the year were as follows:

Determine the maximum CCA deduction for the rental properties for the current year. Income tax reference: Reg. 1100(11), 1101(1ac).

Transcribed Image Text:

Property #1 Property #2 $4.500 Total $17.700 Revenue Expenses Mortgage interest Repairs & maintenance Property tax (3,000) (5,000) (1,000) (4,100) (500 (200) (700) 8,600 (4200) 12.800) (3,000) (5,000) surance Income S4600 300 S00