He owns two other rental properties. Rental #1 is a Class 1 building, which is rented to be used as a supermarket. Rental #2 is a vacant land, which is rented to be used as a parking lot. Rental revenue and allowable expenses (excluding capital cost allowance) from the two properties are as follows: Rental #1 Rental #2 Gross rental revenue ............................................................................................... $30,000 $ 15,000 Expenses: Mortgage interest ....................................................................................... — (25,000) Property taxes ....................................................................................... (3,000) (3,500) Insurance ....................................................................................... (2,000) (2,400) Maintenance ................
He owns two other rental properties. Rental #1 is a Class 1 building, which is rented to be used as a supermarket. Rental #2 is a vacant land, which is rented to be used as a parking lot. Rental revenue and allowable expenses (excluding capital cost allowance) from the two properties are as follows:
Rental #1 Rental #2
Gross rental revenue ............................................................................................... $30,000 $ 15,000
Expenses:
Mortgage interest ....................................................................................... — (25,000)
Property taxes ....................................................................................... (3,000) (3,500)
Insurance ....................................................................................... (2,000) (2,400)
Maintenance ....................................................................................... (8,000) (1,500)
Rental #1 building has a capital cost of $400,000 and UCC on Jan 1st 2021 of $300,000.
Rental #2 land had an adjusted cost base of 500,000 on Jan 1 st 2021 and the land was sold in the end of December 2021 to the current tenant directly for a proceeds of $650,000 with no commission fees
what income should be reported for 2020?
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