Question

When a corporation holds property that is subsequently rented​ out, ________.

Choose the correct answer.

A.

CCA deductions are not permitted unless the corporation is primarily engaged in property rentals

B.

the income received will be classified as property income unless the company is primarily engaged in property rentals

C.

CCA deductions can be taken on the buildings and​ land, so long as the corporation is primarily engaged in property rentals

D.

any gain or loss resulting from the sale of the property will be treated as property income

Answer 1

Answer: Option D. any gain or loss resulting from the sale of the property will be treated as property income.

Explanation:

When a corporation holds a property and it is subsequently rented out it does not treated as a direct income.

It will be treated as property income and list the company is a primary engaged in property rentals. So any gain or loss resulting from the sale of the property will be treated as property income.

Therefor, When a corporation holds property that is subsequently rented​ out it is treated as any gain or loss resulting from the sale of the property will be treated as property income.

Thus, option D. is correct and remaining options are incorrect.