# CCA on appliances of new rental property



## buramiko (Jan 5, 2021)

I just purchased a condo for investment with rental income.
So do I claim CCA for the condo and the appliances under separate class (4% & 8%)?
Or nobody does that since it's a newly acquired property with one capital cost for building + appliances?
Thanks.


----------



## Jimmy (May 19, 2017)

Yes. The building or condo is a different class. Appliances are class 8. The rate is 20%.









Rental Property Expenses: Current or Capital? | 2022 TurboTax® Canada Tips


If you own rental property you can claim expenses. But before you claim you must identify whether it's a capital or current expense; learn how to determine this.




turbotax.intuit.ca


----------



## buramiko (Jan 5, 2021)

Thanks. But how do I determine the capital value of each appliance since I purchased the condo in one lump sum amount? 
I mean it's not an addition of equipment that was paid separately. 
Is there a rule to allocate the amount to the appliances?




Jimmy said:


> Yes. The building or condo is a different class. Appliances are class 8. The rate is 20%.
> 
> 
> 
> ...


----------



## Jimmy (May 19, 2017)

In that case I am thinking just use CCA for the building. I know for things like furnaces, Ac, fixtures etc that come w the property that is the case.

It is disadvantageous to do this tax wise so I don't think it will be a problem. Looking online for your situation but can't find anything


----------



## Jimmy (May 19, 2017)

buramiko said:


> Thanks. But how do I determine the capital value of each appliance since I purchased the condo in one lump sum amount?
> I mean it's not an addition of equipment that was paid separately.
> Is there a rule to allocate the amount to the appliances?




Actually they talk about just leaving pre existing appliances in the total here for the condo cca (post #4) and just use one class for the building.


> I would only include appliances in a different class if you purchased them new after buying the condo. Anything pre-existing just ignore. The amounts would be insignificant compared to the condo and the value hard to determine.











Condo and Capital Cost Allowance - How to determine cost...


Hi, I am trying to determine cost basis for our condo which we started to rent out for depreciation purposes: Condo was purchased in 2012 June for the $500K Lived in the Condo for one year and moved out in June 2013. We had the condo assessed and it had appreciated to $550K. We started...




www.canadianmoneyforum.com


----------



## buramiko (Jan 5, 2021)

Also did some research online and nobody talked about CCA for newly purchased condo with appliances.
The reason I asked, I saw someone talking about allocating certain % of sales income to the appliances when they sell their rental property, to offset some CCA I guess.
The person would have to "make up" an allocation % on its own, I wouldn't know how much % a dishwasher mean to my condo.
If sales income needs allocation, then maybe it would make sense to allocate capital value to appliances as well?





Jimmy said:


> Actually they talk about just leaving pre existing appliances in the total here for the condo cca (post #4) and just use one class for the building.
> 
> 
> 
> ...


----------



## Jimmy (May 19, 2017)

buramiko said:


> Also did some research online and nobody talked about CCA for newly purchased condo with appliances.
> The reason I asked, I saw someone talking about allocating certain % of sales income to the appliances when they sell their rental property, to offset some CCA I guess.
> The person would have to "make up" an allocation % on its own, I wouldn't know how much % a dishwasher mean to my condo.
> If sales income needs allocation, then maybe it would make sense to allocate capital value to appliances as well?


I understand you have one total for the rental income and then apply CCA from all classes to the total. I have never heard of splitting rental income out.


----------

