税务 CCA Strategy for Rental

Hawkeye · Feb 28th, 2012, 21:39

I browsed a few tax forums, and it seems lots of Canadians think CCA (Capital Cost Allowance) shouldn't be claimed because you need to pay more tax when you sell.

I made a case study for discussion here.

Here are my assumptions:
Purchase on 1-Jan-2011: 500000
Sold on 1-Jan-2012: 520000
one year rental income: 30000
All expense: Case 1: 20000, Case 2: 10000
Marginal Tax Rate: 39% in Alberta

For both cases, it looks like maximizing CCA is the best strategy for tax planning because it leaves you most money in your pocket. You can see details in the file attached.

Do I miss anything? What do you think?

Thanks in advance for your insights.

Hawkeye · Feb 29th, 2012, 09:11

Well. I think I figure it out.
100% of Recaptured depreciation, and 50% of capital gain based on your original purchase price are taxed. Then, it doesn't make much difference if the marginal tax rate remains the same during this period.
Thanks.

Feb 28th, 2012, 21:39	#1
Hawkeye Senior Member 注册日期: Jul 2004 帖子: 122 积分:4 精华:2	CCA Strategy for Rental I browsed a few tax forums, and it seems lots of Canadians think CCA (Capital Cost Allowance) shouldn't be claimed because you need to pay more tax when you sell. I made a case study for discussion here. Here are my assumptions: Purchase on 1-Jan-2011: 500000 Sold on 1-Jan-2012: 520000 one year rental income: 30000 All expense: Case 1: 20000, Case 2: 10000 Marginal Tax Rate: 39% in Alberta For both cases, it looks like maximizing CCA is the best strategy for tax planning because it leaves you most money in your pocket. You can see details in the file attached. Do I miss anything? What do you think? Thanks in advance for your insights. 上传的缩略图
Hawkeye Senior Member 注册日期: Jul 2004 帖子: 122 积分:4 精华:2

Feb 29th, 2012, 09:11	只看该作者 #2
Hawkeye Senior Member 注册日期: Jul 2004 帖子: 122 积分:4 精华:2 声望: 2	Well. I think I figure it out. 100% of Recaptured depreciation, and 50% of capital gain based on your original purchase price are taxed. Then, it doesn't make much difference if the marginal tax rate remains the same during this period. Thanks.