Question

At the end of 2019 Mr. Grote owned two rental properties and a piece of vacant land. On the Granville property he earned $60,000 in revenue and incurred $70,000 in expenses. On the Petiteville property he earned $40,000 and incurred $25,000 in expenses. He also sold a rental property in 2019 on which he realized a $350,000 capital gain and $25,000 recapture. Mr. Grote also holds a piece of land in Agazis that he leases out to a farmer. He purchased the land for $700,000 and estimates its currently worth $975,000. The lease produced 30,000 in revenue and interest, property tax, and insurance costs were in total $45,000.

What is NIFTP before CCA and the maximum CCA he can claim for the year?

Answer 1

Calculation of NIFTP
of Mr Grote for 2019
Particulars	Amount $
Granville Property
Revenue earned	60000
Petitevile Property
Revenue earned	40000
Land in Agazis
Lease Rental	30000
NIFTP Before claiming CCA	130000
Calulation of CCA
Granville Property
Expenses on Graville Proprty	70000
Petitevile Property
Expenses on Petitevile Property	25000
Land in Agazis
Less Property tax and insurance cost	45000
Total CCA	140000
Total Allowed LIMIT of CCA Maximum Upto Rs 130000(NIFTP)	130000