How To Reduce Taxes and Keep More Cash In Your Pocket using Capital Cost Allowance(CCA)

As real estate investors, claiming Capital cost allowance (CCA) can help you reduce taxes and keep more cash in your pocket, but it can be a complicated concept.

That’s why I broke down everything you need to know about Capital Cost Allowance deductions in today’s video.

I also share the tax rules around claiming CCA, how to calculate CCA and three special criteria to determine if you should claim CCA or not.

Comment with any questions or thoughts below once you’ve watched the video. I’ll respond as soon as I can.

#RealEstateTaxTips​ #RealEstateInvestors​​ #CanadianInvesting​ #deduction #CCA #capitalcostallowance #taxdeduction #taxsaving #CRA

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[瓦器]

It's a great presentation. There is a question about CCA: That's saying I have 100K personal income while I also invest a property. I claimed the CCA during the time I have the income. Next year, I will be retired and I know I will be soon with a lower income from the CPP, OAS, RRSP, etc. In this case, how do I deal with the CCA? Can you make another video about it, or answer here? much appreciated.😀💌

[hez]

im in the process of getting my real estate license in the ottawa area and cca is one of my topics right now . this video really helped me understand it more thank you

[bashirpopal]

Great video. Can you please give a clear clarifications on the DIEP eligibility for business vehicle?

[riverplateequities]

Just discovered your videos, thank you, they are great!

[BhomSingh-dc]

Hi
Thank you so much for much needed information.
Could you plz make a video on pron n cons of investing in stocks from holdings companies.

There is not much awailable on YouTube.

Thanks

[imoul]

Great video from Real Estate Tax Tips...clarified many of my queries. thanks for this

[sayazkou]

Thanks for sharing. What would be the case if you choose to claim CCA, but you keep the property long enough until there is no more room to claim CCA? Also, is there a maximum time to recapture CCA assuming you don't sale the property?

[pixelabstract]

Hi. Great Video.
What if the price dropped and the property was sold at lower price. The same house if it was sold for $40, 000 in 4 years, how the calculation will look like?

[JaimeVan-ltos]

Your tutorial on CCA is on the building or property which was very helpful and there is a chance I will move into the rental in the future, so based on your advice in this tutorial, I will NOT claim CCA on the property. However, can I still claim CCA on the improvements I have made to the rental property, like new appliances, a new murphy desk/ bed combo and new quartz counters with new sinks?

[mjgumayagay]

If I plan to keep the property forever, do I have to pay the taxes on recapture CCA?

[shoaibb]

Great videos cherry! I find them very informative ….I did have a question …the 4% cca applies to the building only if I’m correct …how do you distinguish between the land it sits on…for eg if you purchase a property for 800k …would you use this full amount to calculate cca or some reasonable percentage rate Like 70% is building portion only so $560k …hope you can help !

[MrGipsonraj]

Great video and excellent explanation. Just wondering if I claim CCA for the current year then do I have to claim every following years?
Thanks

[tetracongo]

I have a few questions.
Can we claim CCA on foreign rental property?
is it still use form T776 to report the foreign rental property if it rental income has already been taxed in Australia?
or should I just put the net Australian rental in in the foreign income section (line 13000) and claim foreign tax credit using T2209 and put the FTC amount in 40500

[nrkrspatel]

Hello, this video is very informative. However, there is no mention of whether one can defer CCA of the earlier years of the rental or just for the current year? If I bought a property before 5 years and never used CCA for any year then can I claim CCA for that property for last 5 years? I.e. 4% of property price x 5 years? Pls let me know. Thank you in advance

[StevoSun]

When you calculate CCA do you do it on a declining balance on the entire class? Or do you track it on individual properties?

Example - if there are multiple properties do you claim CCA on the total class? What happens when you sell one property? How do you calculate recapture/terminal loss?

[jennywen]

Hi Cherry, thank you for your tax tips and examples. I was told by a friend that my new investment which is a Condo is classified differently than a house? Can you advise?

[therizojosesincanada]

Hi there, I’m not claiming CCA on my rental property. However recently I made some few renovations and the total amount came to $18, 000.. Can I just put these costs as outright exoense against my rental income for the year? 7:41

[vamsiprasanth]

If i make a basement apartment for rental property, currently unfinished basement, does it come under cca and not direct expense ?

[bryancheung]

Thanks a lot. U cleared my confusion. Super like

[shuohan]

Thanks Cherry. If I bought a TV for the rental property and claim it as CCA (which I think it falls in Class 8 with rate of 20%), when I sell the property, my plan is to keep the TV for my personal use. Then do I need to do anything for the CCA recapture for the TV (or anything similar in class 8)