I have a few Single Family Homes we rent with a partner and I am curious on options available in accounting for CCA. In other words I have business expenses that pertain to the real estate but are not specific to any one unit. When we have deducted CCA in the past we have taken the max allowed to take the net income to as low as possible. However this year we were able to get this down to zero, but now I have personal real-estate expenses that would take me into a loss whcih I know we can not do with CCA. ÃAre there any alternatives
CCA with partners
- Thread starter gsicilian
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CCA is optional for tax purposes, up to 4%/year on the building value (excl. land and chattels). So, if you are in a loss position without CCA then claim a loss. If not, use CCA to bring it to zero.
Thx Thomas. I am comfortable with that part, but when you are with a partner are you both obliged to take CCA on the same property? In other words Property Net Profit is $2000. (each partner getting $1000). Can one partner take CCA and not the other? to take this to zero?
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Not being an account my understanding is that you take CCA on your asset. Your asset is a 50% stake in a property, not the whole property. So, yes, you can take CCA and the other partner not (or vice versa). Perhaps an accountant can confirm this understanding.