Calculate net rental income for 2024

Assignment Help Accounting Basics

Reference no: EM133925914

Case Scenario: Rental Property Dilemma Alex owns a condo purchased for $300,000 ($200,000 building, $100,000 land). In 2024, rental income is $18,000 (accrual basis). Expenses: $8,000 (interest on $150,000 loan), $4,000 (property taxes and utilities), $2,000 (repairs). The building is Class 1 (4% CCA rate). Alex handles minor repairs but hires a manager for tenants. In 2025, Alex sells the condo at a loss and the income source "disappears," but the loan remains. Get expert-level assistance in any subject with our assignment help services.

? Is this property or business income? Why?

? Calculate net rental income for 2024 (including max CCA).

? Can interest be deducted post-sale under the Disappearing Source Rule? Explain with reference to ITA 20.1(1).

? If short-term rentals (under 90 days) were involved without a permit for 30 of 100 rental days, how would deductions change (assume total expenses $14,000)?

Reference no: EM133925914

Questions Cloud

What is the profit or loss on the transaction : An investor bought four LID March 40 call options for a premium. What is the profit or loss on the transaction, ignoring any other costs or considerations?

What price should johan pay for the bond : Johan purchased a 5-year 5.25% annual Province of Quebec bond that pays interest annually. What price should Johan pay for the bond?

What is the best course of action for the bank to take : The Bank of Canada's targeted operating band is 2.75% to 3.0%, and the overnight rate is 3.2%. What is the best course of action for the Bank to take?

What is haris category of registration : She takes orders from clients and enters them in the trading system, but she is not allowed to offer any advice. What is Hari's category of registration?

Calculate net rental income for 2024 : Can interest be deducted post-sale under the Disappearing Source Rule? Explain with reference to ITA 20.1(1).

Which type of fixed income security will it issue : A transportation company would like to issue new series of bonds by pledging its train cars and locomotives. Which type of fixed income security will it issue?

What is the amount of citradoria corporations allowable : What is the amount of Citradoria Corporation's allowable deduction for charitable contributions for 2024?

What are these shares called : Instead of paying cash for services related to the new offering, it allocates shares held by a trustee to certain suppliers. What are these shares called?

Discuss two types of international banking offices : Compare your bank's services with your classmates (Bank of America). Discuss two types of international banking offices as it pertains to your bank (ICBC).

User Account

All Pages