Residential Property Flipping Rule in Canada
The Residential Property Flipping Rule is a new tax measure introduced by the Canadian...
Providing Accounting & Tax service in Canada.
BOMCAS LTD. Fort McMurray Real Estate Accountant specializes in Bookkeeping, Payroll for Corporate, Small and Medium size Business and Tax preparation and filing for Corporation, sole proprietorship and individual personal tax. We serve clients throughout Sherwood Park, Edmonton and surrounding areas. Local and virtual accounting services provided in order to help client that is unable to visit locally.
Our experience and qualify team have been providing Accounting and Tax service for more than 15 years. When you are looking for a one stop accounting and tax services, we are there to provide a complete solution package for you.
Our Accountant are expert at helping real estate investors to structure their operations and investments in a tax efficient manner. Our professionals participate in budget, planning, investment and tax reporting activities, and help real estate investors to make wise decisions
Rental income is any payment you receive for the use or occupation of property such as house, apartments, rooms, space in an office building, real or movable property etc.
Rental income – income you earn from renting a property that you own.
Rental operation – services you provide within your rental property to your tenants such as heat, lighting, laundry, cleaning or security.
Rental property – generally, a building or certain leasehold interests owned by a taxpayer(s) or a partnership that is mainly used to generate gross revenue from rent.
A rental property, other than a building, usually becomes available for use on the earliest of:
A rental property that is a building, or part of a building, usually becomes available for use on the earliest of:
When determining the available for use date, a renovation, an alteration, or addition to a building should be considered as a separate building.
You may be able to claim CCA on a building that is under construction, renovation, or alteration before it is available for use. You can deduct CCA that you have available on such a building when you have net rental income from it. The CCA that you can deduct is restricted to the amount of net rental income you have after you deduct any soft costs for constructing, renovating, or altering the building. For an explanation of soft costs, see Construction soft costs.
Capital cost – the amount on which you first claim capital cost allowance (CCA). The capital cost of a property is usually the total of the following:
For more information on current expenses, see Current or capital expenses.
Legal and accounting fees for buying a rental property are allocated between the cost of the land and the capital cost of the building. If land is acquired for rental purposes or for constructing a rental property, the legal and accounting fees apply to the land.
Capital cost allowance (CCA) – you may have acquired depreciable property like a building, furniture, or equipment to use in your rental activity. You cannot deduct the initial cost of these properties in the calculation of the net income of the rental activities for the year. However, since these properties wear out or become obsolete over time, you can deduct the cost over a period of several years. This deduction is called CCA.
Capital property – generally any property, including depreciable property, you buy for investment purposes or to earn business income. Common types of capital property include principal residences, cottages, stocks, bonds, land, buildings, and equipment used in a business or rental operation.
The Residential Property Flipping Rule is a new tax measure introduced by the Canadian...
The Multigenerational Home Renovation Tax Credit is a new refundable tax credit introduced by...
The First Home Savings Account (FHSA) is a new registered savings account introduced by...
When it comes to filing your income tax return in Canada, tax credits play...
The Underused Housing Tax (UHT) is a 1% annual tax introduced by the Canadian...
Filing your income tax return is an essential annual task for every Canadian taxpayer....
In Canada, the sale of a principal residence is typically exempt from capital gains...
In Canada, the taxation of cash gifts is a subject that often raises questions....
181 Meadowview Bay, Sherwood Park, AB T8H 1P7, Canada (Online Clients Only)
6063 88 St NW, Edmonton, AB T6E 5T4, Canada
Calgary, Alberta, Canada (Coming Soon)