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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 76IIP

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Paul has two residential rental properties that are mortgaged. Both properties are in Class 1 with a CCA rate of 4 percent.
At the beginning of the year, Property A has a UCC of $500,000 and Property B has a UCC of $1,100,000. Before
consideration of CCA, Property A earned net rental income of $43,000, and Property B had a net rental loss of $27,000.
Calculate the maximum amount of CCA Paul will be able to claim this year.

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