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Video instructions and help with filling out and completing Can Form 4797 Delete

Instructions and Help about Can Form 4797 Delete

Okay this is Mike and today we're going to look at capital gains on depreciable assets so today we're going to use the example of an individual who owns a building and is renting it out to tenants so the information that we have is that he is not incorporated so all the rental income and the capital cost allowance which is the Canada Revenue Agency term for depreciation will be declared on the individuals personal income tax return so this individual purchased the building for four hundred and fifty two thousand earned rental income for three years of twenty thousand per year and disposed of the building for five hundred and seventeen thousand at the end of year three so we have three challenges one is to calculate the adjusted cost base in other words what did the building cost us calculate the capital gain at the sale of the building and calculate any capital cost allowance recovery so we'll get to each one of these in a step-by-step manner so the first steps we're going to look at is first are calculating our adjusted cost base otherwise known as ACB we're going to calculate the capital cost allowance otherwise known as depreciation we're going to calculate the capital gain when the property was disposed sold and step four will be to calculate the recovery of the CCA and see how that's included in your taxable income here we have a table showing the purchase price of the building some calculations for CCA and some calculations relating to the disposal and the recovery of CCA so let's take the first piece what is the adjusted cost base of this property we see here that this individual paid four hundred and thirty thousand for the building twenty two thousand of...

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