Teh_Bandwagoner
02-17-2011, 03:41 PM
Got a couple questions on this:
My understanding is that you cannot artificially create a loss or a gain from depreciation i.e. I can't claim CCA if I'm reporting a loss. But does that mean on just my rental property? Or is the loss for the combined rental income and employment income.
Example:
Let's say I make $50,000 this year in income plus $15,000 from my rental ($65,000 total income), but then I record a loss on my property of $20,000 (without depreciation). So in other words a $5000 loss on my rental. Then let's say I crunch out a depreciation of $2000. Can I claim that $2000? (i.e. $50,000 - $5000 -$2000 = $43,000 net income)
Second question:
How far back can I claim for CCA? Is it just this tax year, this tax year and the year before, or as far back as I've been renting out the place, so long as I haven't claimed anything previously?
My understanding is that you cannot artificially create a loss or a gain from depreciation i.e. I can't claim CCA if I'm reporting a loss. But does that mean on just my rental property? Or is the loss for the combined rental income and employment income.
Example:
Let's say I make $50,000 this year in income plus $15,000 from my rental ($65,000 total income), but then I record a loss on my property of $20,000 (without depreciation). So in other words a $5000 loss on my rental. Then let's say I crunch out a depreciation of $2000. Can I claim that $2000? (i.e. $50,000 - $5000 -$2000 = $43,000 net income)
Second question:
How far back can I claim for CCA? Is it just this tax year, this tax year and the year before, or as far back as I've been renting out the place, so long as I haven't claimed anything previously?