capital cost allowance - first year adjustment rule

[shsamardar]

Hi Dear forum coordinators

We have a condo in canada and are reporting section 216 for rental as non resdinese

We are reporting capital cost allowance for the property.

This year, we have major renovation in the building and we want to add the cost to CCA.

I am trying to explain my problem with this example:

Example ,from last year , undepreciated capital cost is 100k
cost of additions for this year is 6k
UCC = 100k + 6k= 106k
adjustment for current year = %50 of additions = %50 of 6k= 3k
base amount for capital cost = 106k-3k = 103k

it seems as part of first year additions, I lost 3k that won't be considered
for CCA at all.
Is this true?

won't we recapture the 50% of remaining additions in future years?if there is a way, would you please advise how.

Regards,

[shsamardar]

Hi

I appreciate for any any help regarding this.

REgards,

[nelsona]

I guarantee that bumping up a post after one day is NOT going to get an answer.

[shsamardar]

for our condo that is part of 26 story building, last year it was strata plan charges for:

1- security system upgrade
2-membrane repair of building

The costs were divided between owners.

Instead of expensing them, can they be claimed under CCA?
Are they depreciable costs?

Regards,