Saul has two residential rental properties that are mortgaged

Taxation Dec 17, 2020

Saul has two residential rental properties that are mortgaged.  Both properties are in Class 1 with a CCA rate of 4 percent.  At the beginning of the year, Property A has a UCC of $500,000 and Property B has a UCC of $1,100,000.  Before consideration of CCA, Property A earned net rental income of $43,000, and Property B had a net rental loss of $27,000.  What is the maximum amount of CCA Saul will be able to claim this year?



		
Nil.







		
$44,000.

		
$20,000.





		
$16,000.

Expert Solution

16000

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