Question 2
Ms. Gold has been investing in real estate for almost half a century. On January 1, 2018, she owned four rental properties and the relevant facts on these properties are as follows:
Required:
Calculate Ms. Gold’s net rental income for 2018. You should provide a separate calculation for each property. Specify how much CCA should be taken for each building. (18 marks)
Property 1 Class 3 building
Capital Cost - $850,000
UCC begining -$627,000
Rent generated - $81,000
Incurred property tax -$10,500
Interest Charges - $13,000
Other exp (Excluding CCA) - 17,500
Mr Gold gross rental income was $81,000
Rental Expenses (10,500 + 13,000 +17,500) - $41,000
Therefore, his net rental income before deducting CCA is $40,000 (81,000 - 41, 000)
Question 2 Ms. Gold has been investing in real estate for almost half a century. On...
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