Shannon Ireland Shannon is a new client of the Firm. She was referred to Ms Partner by her aunt, Mary O'Hara Shannon prepared her own 2021 tax return and filled it in April 2022. However, she did not include anything in respect of the rental property noted below as she wasn't su re whatto do. She has now come to the Firm to get her return amended to properly deal with the rental property and some advice. Mrs. Partner has asked that you provide her a memo with the information to amend Shannon's 2021 return . including detailed calculations where appropriate. In 2020, Shannon purchased a vacant lot in Belleville, Ontario, her hometown, with plans to build a residential duplex as a rental property on it. At one time Shannon thought she might move back to Belleville to be close to her parents and live in half the duplex. Construction of the duplex started in 2020 and was completed in 2021 The land was purchased on January 1, 2020 for $300.000 and Shannon paid land transfer tax and legal fees on the purchase totalling $10.000 The purchace was financed with a mortgage The mortgage interest is $1,000 per month and the property taxes are $300 per month, both starting in January 2020. Construction started July 1, 2020 and was completed February 28, 2021. The construction was financed with a line of credit. Costs related to the building are: Bricks, cement, wiring HVAC, etc. 5800.000 Architect 100 000 Line of credit interest July 1, 2020 to February 28, 2021 40,000 Utility Service connections paid in February 2021 5,000 Landscaping paid in May and June 2021 5,000 The line of credit was replaced with a permanent mortgage for 9900 000 on March 1, 2021 The interest rate on this mortgage is 370. Also on March 1, 2021, tenants moved into both units of the duplex. The net monthly rental income for 2021, after deducting regular operating costs such as utilities, insurance, mortgage interest and property taxes was $4,500. Mrs. Partner would like to know the cost of the land and building to Shannon and the maximum amount of capital cost allowance Shannon can claim against her 2021 net rental income Earlier this year, Shannon met Patrick, an Irish citizen and resident, while on vacation in Ireland visiting various relatives Shannon is moving permanently to Ireland at some point in 2023 (exact date not yet determined) marry Patrick and will become an Irish resident and a non- resident of Canada at that time It has already been determined that she will become a non- resident so you don't need to analyze her residency status. Shannon plans to continue to own the duplex and rent it for a few more years She will sell it at some point in the future. Sheno longer has any plans to live in it herself