The following questions deal with the rental income scenario described below: (7 marks)

James bought an apartment condo in Calgary on June 1, 2020 for $238,000 - putting 25% down and financing the balance with a 25-year mortgage.

Original 5-year mortgage term was at a rate of 3.50%.

Mortgage payments have been made monthly

The condo has been rented for $2,250/month since July 1, 2020

2022 annual property taxes were $1,893.40

Condo fees were $375/month for 2022

James did major kitchen renovations in June of 2020 at a cost of $18,000 (paid in cash - i.e. not financed)

James had the bathroom remodeled and renovated in August of 2021 at a cost of $14,240 (paid in cash - i.e. not financed)

The carpets were replaced in 2022 at a cost of $1,950

The apartment was repainted in 2022 at a cost of $1,200

Has receipts for $316.17 for regular maintenance items in 2022

Paid $48/month for landlord insurance in 2022

The CCA class rate for the property is 4.0%

James claimed the full / maximum CCA on the property for both 2020 & 2021 and wants to do the same for the 2022 tax year.

This is the only revenue property that James has ever owned.

For the 2022 income tax year:

a) What would the mortgage interest be?

b) What CCA claim would be available to James on the property?

c) What would be the rental income before the CCA claim?

d) What would be the lowest possible net taxable rental income to James for the

2022 income tax year?