Class 13 - Leasehold interest
A leasehold interest is the right of a tenant to a rented
property.
The capital cost of a leasehold interest of Class 13 property
includes:
a. an amount that a tenant expends in respect of
improvements or alterations to a leased property that are capital
in nature, other than improvements or alterations that are included
as a building or structure
b. an amount that a tenant expends to obtain or extend a
lease or sublease or pays to the landlord to permit the sublease of
the property.
To determine your appropriate class, we suggest you contact the
CRA or visit the following sites:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/capital-cost-allowance-rental-property/rental-classes-depreciable-property.html#class13
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it464r/archived-capital-cost-allowance-leasehold-interests.html
We give you the procedure to claim CCA on a Class 13 basis, when
a tenant spends capital on improvements to a leased property or the
amount spent on obtaining or extending a lease.
You must have entered your business income under "Income
from self-employment".
1. Select the subsection "CCA" and choose
"Class 13 SL".
2. On the page that appears on the line "Purchase
date of the property" indicate the date in DD-MM-YYYY.
3. On the section "Additions in the year", go
to the line "Duration (in months) and total cost".
Enter the number of months of lease and, in the field to the right,
enter the cost.
4. If this is your first year, on the line "Application
of the half-year rule to current year additions" and
choose which one is appropriate.
5. However, if you have carried over the previous year's data,
class 13 will be reported correctly and you will have nothing to
add. Make sure that the line "Application of the half-year
rule" is left blank.
The CCA amount will be entered on
line 9936 of the T2125
form, while The CCA amount you can claim will show
in Area A of page 5,
in column 12.
ID: 20191025094046NI.xml
Webpage: KPA320-20191025094046NI.htm
