Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Change In Use - CCA On Rental Property)10 Marks For a number of years, Ms. Danine Post has owned a rural cottage property that has

(Change In Use - CCA On Rental Property)10 Marks

For a number of years, Ms. Danine Post has owned a rural cottage property that has been used for her personal enjoyment.The cottage cost $142,000 in 2015 and, on July 1, 2019, it has a fair market value of $242,000.She estimates that the fair market value of the land on which the cottage is located is $22,000 on both of these dates.It will not be designated as her principal residence for any of the years owned.On July 1, 2019, she rents the property to an arm's length party for an amount of $1,000 per month for a period of three years.Net rental income for the year ending December 31, 2019, before the deduction of any CCA, is $4,800.

Required: What is the maximum amount of CCA that she can deduct for 2019?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

6th edition

1259864235, 1259864230, 1260159547, 126015954X, 978-1259864230

More Books

Students also viewed these Accounting questions

Question

The number of people commenting on the statement

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago