If the fiscal period applicable to the rental income is less than 12 months, should I limit the amount of CCA to which a client would normally be entitled pursuant to the ratio of the number of days in the fiscal period to the number of days in the calendar year?No. Rental income is usually treated as property income. A taxpayer must always report his income based on the calendar year and the capital cost allowance is not subject to the restriction of Regulation 1100(3) of the Income Tax Act. November 21, 2013 |
