Depreciate Asset By 4%
- Thread starter wader
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- Sep 3, 2010
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The short answer is yes, buuuuuut.......
Since you haven't provided any details, I'm going to throw out the usual things to remember on CCA
1. Remember to split the cost of the property between the purchase of the land vs the building. Buildings depreciate. Land does not.
2. If this is the first year of owning the property, you are only allowed 2% due to the '50% rule' for the year of acquisition.
3. You can not create or enhance a loss with CCA. You can take your rental income to zero, but that's it.
There's also a rather long discussion on whether you even WANT to take the depreciation or not elsewhere in the forum, not going to rehash all those items here.
Since you haven't provided any details, I'm going to throw out the usual things to remember on CCA
1. Remember to split the cost of the property between the purchase of the land vs the building. Buildings depreciate. Land does not.
2. If this is the first year of owning the property, you are only allowed 2% due to the '50% rule' for the year of acquisition.
3. You can not create or enhance a loss with CCA. You can take your rental income to zero, but that's it.
There's also a rather long discussion on whether you even WANT to take the depreciation or not elsewhere in the forum, not going to rehash all those items here.
- Joined
- Aug 30, 2007
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- 13,881
[quote user=wader]Can I depreciate an asset by 4% for CCA, even if i'm not a corporation?
yes, but only the building house value and not land.
You can also not deduct this depreciation from your other income. You can use it only to get the taxable income of that property to 0. You also have to pay this "re-capture" back later, when you sell the asset.
yes, but only the building house value and not land.
You can also not deduct this depreciation from your other income. You can use it only to get the taxable income of that property to 0. You also have to pay this "re-capture" back later, when you sell the asset.