# Rental properties - do you personally deduct CCA? (Building Depreciation)?



## Addy (Mar 12, 2010)

I asked my accountant if I can deduct depreciation on our buildings for rental properties we own. This is her response (below) - I trust her opinion. I am curious if others deduct CCA on rental property and if so, why specifically? (I am assuming there must be some cases where it's advantageous to do so.)

"Yes you are allowed to deduct CCA on rental property, but CCA cannot be deducted to create a rental loss. Remember though that property appreciates in value (as a general rule) so when you go to sell that property at some point in the future you will have to recapture the CCA and thus will have a large rental profit in the year you sell. Because of this you may not find it beneficial, in the long run, to claim CCA. Especially because you are already in a low tax bracket you will not benefit much from the ability to defer tax with the use of CCA."


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## marina628 (Dec 14, 2010)

I own 5 rentals and do not deduct any CCA , took my accountants advise on this.


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## Addy (Mar 12, 2010)

Well Marina from what I gather you make a lot more money than I do, so if you're not deducting it then my accountant must be right, there's no sense in me deducting it!  Thanks for sharing.


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## Berubeland (Sep 6, 2009)

It is my understanding that CCA is saved (even in buildings) to offset the rental income after paying income taxes becomes too onerous once there is less interest to deduct. Basically after year 10 and even then only if you really can't pay the income taxes.


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## jamesbe (May 8, 2010)

My accountant was also not deducting it.


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## stardancer (Apr 26, 2009)

I have never deducted CCA (since 1981), and have in fact, appreciated the building every time we did a major renovation. For 2012, I did a change of use and because no deducted CCA was added back in, I had a nice terminal loss.


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