Part 2 Jane Doe bought a rental property with a total cost of $470,000 ($90,000 allocated to the land) on June 1, 2022. During the year, Jane spent $3,100 to paint the building. She also spent two hours on repairing the faucet damaged by the tenant. As she is a doctor, she estimated her total labour cost to be $400 in total. Her total rent revenue and expenses are $37,000 and $21,350 (excluding CCA and the above costs) respectively. Determine the maximum CCA Jane can claim and the CCA amount she needs to claim to minimize her rental income for 2022.
Part 2 Jane Doe bought a rental property with a total cost of $470,000 ($90,000 allocated to the land) on June 1, 2022. During the year, Jane spent $3,100 to paint the building. She also spent two hours on repairing the faucet damaged by the tenant. As she is a doctor, she estimated her total labour cost to be $400 in total. Her total rent revenue and expenses are $37,000 and $21,350 (excluding CCA and the above costs) respectively. Determine the maximum CCA Jane can claim and the CCA amount she needs to claim to minimize her rental income for 2022.
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 44P
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![Part 2
Jane Doe bought a rental property with a total cost of
$470,000 ($90,000 allocated to the land) on June 1, 2022. During the
year, Jane spent $3,100 to paint the building. She also spent two hours
on repairing the faucet damaged by the tenant. As she is a doctor, she
estimated her total labour cost to be $400 in total. Her total rent revenue
and expenses are $37,000 and $21,350 (excluding CCA and the above
costs) respectively. Determine the maximum CCA Jane can claim and
the CCA amount she needs to claim to minimize her rental income for
2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F238df6cc-97dc-4287-90d5-728824f783fc%2F8a7bb86c-46f2-42d9-b233-2bb909ba360a%2F30nfm3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Part 2
Jane Doe bought a rental property with a total cost of
$470,000 ($90,000 allocated to the land) on June 1, 2022. During the
year, Jane spent $3,100 to paint the building. She also spent two hours
on repairing the faucet damaged by the tenant. As she is a doctor, she
estimated her total labour cost to be $400 in total. Her total rent revenue
and expenses are $37,000 and $21,350 (excluding CCA and the above
costs) respectively. Determine the maximum CCA Jane can claim and
the CCA amount she needs to claim to minimize her rental income for
2022.
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