Client has a principal residence that he rents out 30% of his house, he bought appliances of $5K, should he claim CCA? Will he lose the principal residence exemption?


1 person found this helpful

You don't make it clear if the appliances are for the exclusive use of the renters, or if this is one of those situations where your client is renting out rooms, with shared use of the kitchen.  If the rented-out space has a self-contained kitchen area and the appliances are for the exclusive use of the renters then, yes, you can take CCA.  But I would be very wary of taking CCA on appliances where there is mixed use - personal and rental.

Jo Ruelle

Was this answer helpful? Yes No
1 additional answer

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: