Part 2 Jane Doe bought a rental property with a total cost of $470,000 ($90,000 allocated to the land) on June 1, 2022. During the year, Jane spent $3,100 to paint the building. She also spent two hours on repairing the faucet damaged by the tenant. As she is a doctor, she estimated her total labour cost to be $400 in total. Her total rent revenue and expenses are $37,000 and $21,350 (excluding CCA and the above costs) respectively. Determine the maximum CCA Jane can claim and the CCA amount she needs to claim to minimize her rental income for 2022.

Part 2 Jane Doe bought a rental property with a total cost of $470,000 ($90,000 allocated to the land) on June 1, 2022. During the year, Jane spent $3,100 to paint the building. She also spent two hours on repairing the faucet damaged by the tenant. As she is a doctor, she estimated her total labour cost to be $400 in total. Her total rent revenue and expenses are $37,000 and $21,350 (excluding CCA and the above costs) respectively. Determine the maximum CCA Jane can claim and the CCA amount she needs to claim to minimize her rental income for 2022.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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