Question

Sally Frampton has two Class 1 rental properties. Property 1 has a UCC at the beginning...

Sally Frampton has two Class 1 rental properties. Property 1 has a UCC at the beginning of the year of $550,000 and has net rental income before the deduction of CCA of $43,000. Property 2 has a UCC of $985,000 at the beginning of the year, but has incurred a net rental loss before CCA of $26,000. What is the maximum amount of CCA that Sally can claim this year?

Do you separate and why?

How much CCA would be calculated if deductible?

What would be the maximum to deduct?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At the end of 2019 Mr. Grote owned two rental properties and a piece of vacant...
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...
Mike has $235,000 he wishes to invest in two rental properties. One yields 10% and the...
Mike has $235,000 he wishes to invest in two rental properties. One yields 10% and the other yields 12%. For safety he wants to split his investment between the two properties instead of investing all of his money in the higher yielding rental property. If his goal is to achieve a total income earned of $25,000 a year from these two properties, how much money should he invest in each property. You must show your work illustrating how you calculated...
Mike has $235,000 he wishes to invest in two rental properties. One yields 10% and the...
Mike has $235,000 he wishes to invest in two rental properties. One yields 10% and the other yields 12%. For safety he wants to split his investment between the two properties instead of investing all of his money in the higher yielding rental property. If his goal is to achieve a total income earned of $25,00 a year from these two properties, how much money should he invest in each property. You must show your work illustrating how you calculated...
At the beginning of 2019, Shamarama Inc, has two assets in Class 8. The cost of...
At the beginning of 2019, Shamarama Inc, has two assets in Class 8. The cost of each asset was was $30,000 and the class 8 UCC balance was $25,000. On July 30, 2019, one of the assets was sold for $40,000. There are no other additions or dispositions prior to the company’s December 31, 2019 year-end. . What is the effect of the disposition on the company’s 2019 net business income? What is the company’s January 1, 2020 UCC balance...
Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a...
Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a basis of $10,000 and a fair market value (FMV) of $25,000. He has owned the artwork for 10 years. The charity that Henry donated the artwork to is a public charity and will display the art work in its art center. What is the maximum charitable deduction in 2018 that Henry can take? a.$0. b.$10,000. c.$15,000. d.$25,000. Diego has AGI of $125,000 before considering...
Acorn Ltd. has a November 30-year end. As of December 01, 2015, Acorn Ltd. had the...
Acorn Ltd. has a November 30-year end. As of December 01, 2015, Acorn Ltd. had the following UCC balances for its various tangible assets:                                               Class 01             $705,600                                               Class 08             330,000                                               Class 10             185,000                                               Class 13             175,500 Class 01: A new building was purchased on December 15, 2015 at a cost of $ 950,000, with $ 150,000 of this total being allocated to the land on which the building was situated. The new building was used 50%...
On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset...
On June 5, 2016, Javier Sanchez purchased and placed in service a new 7-year class asset costing $550,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2016, his business generated a net income of $945,780 before any § 179 immediate expense election. Determine the maximum deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2016 and 2017. If required round your intermediate...
1.( T or F ) An individual who directly owns real estate and earns net rental...
1.( T or F ) An individual who directly owns real estate and earns net rental income for the tax year January 1 – December 31, 2018 will have an effective tax rate of 29.6% on it. 2.( T or F ) Jumbo LLC, is treated as a partnership and is owned by 50% by two individuals, Rod and Tom. Jumbo LLC acquired Bighorn Center, an industrial rental property for $2 million and collects rent from tenants. When Bighorn Center’s...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition,...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition, Trail has a net capital loss of $30,000. Trail's taxable income is $50,000 $20,000 $140,000 $60,000 Burt and Tiffany form Owl Corporation. Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as Owl’s manager for one year. Each receives 100 shares of Owl Corporation stock. The value of Tiffany’s services for one year is $130,000. Which...
1. Jose purchased a delivery van for his business through an online auction. His winning bid...
1. Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and a registration fee of $220; wash and detailing for $121; and an engine tune-up for $327. What is Jose’s cost basis...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT