开个回答问题贴，请大家有问题都放这里

[OCAC]

先是西西妈的问题：

第一个问题，自己买原料upgrade rental property, 比如安装木地板，油漆，修理门窗橱柜，原料做当年的成本吗？人工可以自己按市场价给自己家人发工资做为cost吗？

----------修理门窗橱柜可以做为expense deduct掉，但是安装木地板的原料应该要capitalized. 如果自己亲戚家的小孩子到你家来帮忙做地板，而且你也确实是给他/她付了钱（最好是支票），是可以作为cost的，但是如果是给自己老公/老婆算工资，而自己老公/老婆又不是干装修这一行的，就不行了。

第二个问题，rental property里的upgrade费用，比如地板，电器，furnace 怎么报呢？算一年里面的expense 呢，还是要分到几年里面deduct?

--------- 我建议你把 地板，电器，furnace 都capitalized - 也就是说amortize over a period of time (分到几年里面deduct).--------

第三个问题，首付和legal expense, 还有期间购买电器和其他（跟这个property)不相关的花费在LOC 里一起做成了一个mortgage,这样的情况，把相关份额的利息算出来做cost 可以吗？

------- 首付和legal expense 部分的利息是deductible的。建议你尽量不要把rental property 的expense 和personal expense 混在一起（不要用同一个LOC). 混在一起的话，当你还钱回LOC的时候，你需要说明你还的是 for rental property expense portion or personal expense portion. ------------

 

[OCAC]

jj30318 的问题：

capital cost

I have a question about capital cost when filing tax return:
If we bought a house at the cost of 200,000 and my wife and I both have 50% share of the property. When I filed my return, the capital cost for myself should be 200000 or just 50% of the 200,000 (100,000)?
The accountant at Delloitte put 100,000 in the first year, and 200000 in the second year. After I pointed it out the difference, they changed it to 100,000.
Some tax software seems use 200,000 and I have to manually changed it in order to get 100,000 in the form.
Just want to get a clarification.
Thanks.


------- The total capital cost of $200,000 should be spited between you and your wife - both you and your wife should claim the capital cost of $100,000 on each of your tax return. -------




the amount of Management and Admin expenses

Just want to know much is a reasonable mount of management and admin expenses?
is 10% of the rental income a reasonable management and admin expenses?



------------- My understanding is that the reasonable amount of management and admin expenses is based on the actual amount of work that has been performed. For example, if your wife helped you to manage your properties and based on the record (I would suggest to keep track of time spent) she worked 200 hours during the year. If you had to hire an unrelated person to do the same amount of work, you could have paid him/her $15 per hour. Then the reasonable mount of management and admin expenses you should claim for the year is $15*200 = $3,000.

I think Hing425 can give us some update on this issue. He has a client who was recently audited by CRA for this issue.-----------

 

[hing425]

the amount of Management and Admin expenses

Just want to know much is a reasonable mount of management and admin expenses?
is 10% of the rental income a reasonable management and admin expenses?



------------- My understanding is that the reasonable amount of management and admin expenses is based on the actual amount of work that has been performed. For example, if your wife helped you to manage your properties and based on the record (I would suggest to keep track of time spent) she worked 200 hours during the year. If you had to hire an unrelated person to do the same amount of work, you could have paid him/her $15 per hour. Then the reasonable mount of management and admin expenses you should claim for the year is $15*200 = $3,000.

I think Hing425 can give us some update on this issue. He has a client who was recently audited by CRA for this issue.-----------

OCAC has correctly pointed that CRA would like to know what kind of service that your wife provided and whether the amount paid is reasonable or not (i.e. would you play the same amount if you hire someone else to perform those duties). PLUS, CRA would like to see the following

1) Actual cheque paid to your wife; and
2) the amount has been correctly reported on Tax Return

 

[OCAC]

1) capital gain = $300 - 250 = 50K ---> taxable capital gain = 50 *50% = 25K
recapture = $50K ---> not subject to 50%.
so your 2010 taxable income related to selling of your property = 25K+50K = 75K

2) Recapture is not a concern for your car in this case.

 

[OCAC]

Usually, appliances will not appreciate in value. If you have included the appliances in the sale of your property I would allocate part of your sale price (equal to amount of UCC for appliances) to the appliances.

For example: dish washer was bought for $1,000.
accumulated amortization expense for dish washer over the last several years = $700
UCC (Undepreciated capital cos) for the dish washer = $1000-700=$300 at the beginning the year that the property was sold.
The property was sold for $200,000 (dish washer was included).
I would allocate $300 of the total selling price to the dish washer ----> so the FMV of the dish washer = $300 ---> therefore capital gain/loss = 0 and recapture = 0.
---> the FMV for the land and building = $200,000-300 = $199,700

Capital gain/loss and recapture for appliances, land and building should should be calculated separately as they are in the different classes.

 

[超级潜水员]

Question on Rental property, normally what's the percentage of purchase goes to land for town home?

 

[T&G]

My accountant used 20% as the land value. However, I can not find where the 20% is shown in the tax form. Does nyone know where can I find this number in the tax from?

Thanks.

If the property is owned by your corporation and you file T2, you will find the number on the T2 schedule 8.

If the property is owned by you personally and you file T1, you should see the number on schedule T776 of your T1 return.

 

[OCAC]

Question on Rental property, normally what's the percentage of purchase goes to land for town home?

It depends. The land of town home in downtown or in orleans will have a different %. It based on the value of the land. A better way to determine is to take a look at your property evaluation by the City. In most of the case, 20% would be reasonable.

 

[超级潜水员]

Thanks! What's the percentage for high rise condo then?

 

[OCAC]

Thanks! What's the percentage for high rise condo then?

这个还是很难说，还是根据property evaluation为准。

 

[regal]

请教一个RRSP的问题. 去年12月的时候犯了个错, 忘记年中的时候公司已经给RRSP帐户打了一笔钱, 我还是按我今年的全部额度去买了RRSP. 过了两天想起来不对, 到银行去把超过的部分取了出来, 当然是被扣税了. 当时银行的人跟我说这些税是会全部退给我的. 后来银行给我发了张T4RSP的税单. 我应该如何报这部分的税呢?
我在报税软件里面算了一下, 我交的那部分税好像没有给我退回来啊. 里面没有任何地方显示我的RSP income是今年存进去再取出来的, 而不是我从以往的RRSP里提出来的. 而在我今年RRSP contribution那里, 我又不能填超过我的供款limit的数额. 我该怎么claim这个呢?
先谢过了!

 

[mimi_ge]

一些建议：

- 如果你的rental units 较多，生意较大，而你又没有accounting 和tax方面的training, 建议还是找professional做bookkeeping and tax比较好。
- Record keeping 是最重要的 – extremely important!!! 所有的receipts 都要收好（要收6年），不要等到报税的时候才去找receipts.
- 如果你和你的spouse共同拥有你们的rental property，在第一年报税的时候，你们可以决定是夫妻双方共同报（50/50）或者是一方报100%的rental income/loss. 但是一旦第一年决定了，就一定要consistent from year to year. 不能说我今年是income就让lower income spouse 报，明年是loss就让higher income spouse 报. 报capital gain/loss也是同样的道理.

暂时就想到这些，如果想到别的，我再补充。

请问：由夫妻双方自由决定每人报多少%的rental income，这个是在哪个文件里define的？不是在质疑LZ的专业呀，只是正在读T4036 （Rental Income），然后发觉IT511R（Interspousal and Certain Other Transfers and Loans of Property）定义了很复杂的property transfer关系，并且声明这个是为了防止夫妻关系中收入高的一方把property related收入转给收入低的一方来避税，所以有点不敢这么办。多谢LZ热心答疑！

 

[OCAC]

我的意思并不是说夫妻双方可以自由决定每人报的%， 任何决定的%都应该是justified.
从practice来讲，CRA一般会看你们决定的这个%是不是reasonable.
如果夫妻2人都有full-time工作，钱又都放在一起，共同买了一个rental property,那share 50/50是最reasonable的。即使房子写的是老公一个人的名字也无所谓。
如果妻子没有任何income, 而100% of rental income都给了老婆，这个就很难argue了。
property transfer 和 claim rental property income是2个不同的概念。 property transfer 主要是看这个property legally是属于谁的。 如果property是属于老公的私有财产，老公要transfer给老婆，那就会有income attribution的issue.

 

[mimi_ge]

明白了。谢谢谢谢！

 

[OCAC]

请教一个RRSP的问题. 去年12月的时候犯了个错, 忘记年中的时候公司已经给RRSP帐户打了一笔钱, 我还是按我今年的全部额度去买了RRSP. 过了两天想起来不对, 到银行去把超过的部分取了出来, 当然是被扣税了. 当时银行的人跟我说这些税是会全部退给我的. 后来银行给我发了张T4RSP的税单. 我应该如何报这部分的税呢?
我在报税软件里面算了一下, 我交的那部分税好像没有给我退回来啊. 里面没有任何地方显示我的RSP income是今年存进去再取出来的, 而不是我从以往的RRSP里提出来的. 而在我今年RRSP contribution那里, 我又不能填超过我的供款limit的数额. 我该怎么claim这个呢?
先谢过了!

如果你的RRSP over contribution 没有超过$2,000可以不用管它，明年contribute的时候记住少contribute $2,000. 如果超过了$2,000要把超过的部分取出来。你需要fill T3012A form 去银行 withdraw. 这样你的银行不会扣你的税。 而且你还有fill T1-OVP form给CRA 计算你的over contribution penalty. 千万不能直接去银行取钱。