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Determine the maximum CCA deduction for the rental properties for the current year.

Determine the maximum CCA deduction for the rental properties for the current year.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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At the end of the current year 2020, Ted Cub owned two residential rental properties. Rental property #1 cost $135,000 (land $50,000, building $85,000) and at the close of last year had a UCC of $69,000. Rental property #2 was acquired in the current year for $225,000 (land $85,000, building $140,000) Revenue and expenses for the rental properties during the year were as follows Property #1 Property #2 Total Revenue $15.250 $6.500 $21.750 Expenses: Mortgage interest Repairs & maintenance Property tax Insurance (500) (6,500) (3,100) (500) (10,600) (3,500) (0) (1,000) (200) (4.700) (4,000) (6,500) (4,100) (700) (15.300) Income $ 4.650 $1.800 $ 6.450 Determine the maximum CCA deduction for the rental properties for the current year.
Transcribed Image Text:At the end of the current year 2020, Ted Cub owned two residential rental properties. Rental property #1 cost $135,000 (land $50,000, building $85,000) and at the close of last year had a UCC of $69,000. Rental property #2 was acquired in the current year for $225,000 (land $85,000, building $140,000) Revenue and expenses for the rental properties during the year were as follows Property #1 Property #2 Total Revenue $15.250 $6.500 $21.750 Expenses: Mortgage interest Repairs & maintenance Property tax Insurance (500) (6,500) (3,100) (500) (10,600) (3,500) (0) (1,000) (200) (4.700) (4,000) (6,500) (4,100) (700) (15.300) Income $ 4.650 $1.800 $ 6.450 Determine the maximum CCA deduction for the rental properties for the current year.
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