Question
Your client purchases a residential property on June 1, 2020. The cost of the property (land and building) is $476,000. The land value is approximately
Your client purchases a residential property on June 1, 2020. The cost of the property (land and building) is $476,000. The land value is approximately 20% of the total cost. Your client spends $4,700 to paint the interior and exterior building. The total rent for 2020 was $57,000 and other expenses (not including CCA and not including the painting) was $45,000.
Required:
Calculate the maximum CCA available in 2020 and the total net rental income.
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
