How would deductions change

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Reference no: EM133927130

Problem

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. 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? Get the instant assignment help. 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: EM133927130

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