Jose Montana owns a cottage that he purchased in 2007 for 330000 with 100000 of

# Jose montana owns a cottage that he purchased in 2007

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35.Jose Montana owns a cottage that he purchased in 2007 for \$330,000, with \$100,000 of this amountreflecting the value of the land. On January 1, 2016, this cottage is converted to a rental property. Atthe time of conversion, it is estimated that the cottage has a fair market value of \$600,000, with\$150,000 of this amount reflecting the value of the land. For 2016, rental income, net of all expensesexcept CCA equals \$10,200. What is the maximum amount of CCA that Jose can deduct on this rentalproperty for 2016?A.\$10,200.B.\$6,800.C.\$9,000.D.\$18,000.Questions 36 and 37are based on the following information:Ramon lives in Calgary. In 2013 he purchased a second house in Lethbridge for \$180,000 (land\$100,000; building \$80,000). His grandmother lives in the house rent free and was the only occupantfrom 2013 to 2016. In March 2016, Ramon converted the house into a duplex. His grandmother livesin one unit rent free and the other unit is rented to tenants. The market value of the house in March2016 was \$215,000 (land \$115,000; building \$100,000). 36.What is Ramon’s taxable capital gain for the 2016 change in use? He will not use his principalresidence gain reduction for the Lethbridge house.37.What is Ramon’s maximum 2016 CCA deduction for this rental property? The net rental incomebefore CCA is \$6,000.
38.If a business asset with a capital cost of \$100,000 and a UCC of \$80,000 is converted to personal use ata time when its fair market value is \$150,000, which of the following statements is NOTcorrect?39.Arnold Swartz converted his principal residence into a rental property after having lived in it for 5years. He has not been able to find a tenant during the current year. The house had cost \$1 million. Atthe time of conversion, the property had a fair market value of \$1.4 million. What is the UCC balancein the rental property’s Class 1 before any CCA is taken?A.\$1,000,000B.\$1,200,000C.\$1,400,000D.NilChange In Use - Principal Residence Elections40.Susan Cousins purchased a house in Oshawa in March, 2014, for \$250,000 (land; \$80,000, building;\$170,000). Even though Susan would be unable to reside in the house immediately, she felt it was avery good price and did not want to miss the opportunity to own this house. She rented out the houseas of April, 2014. Her tenants will move out in December, 2015, and she will move into her house inJanuary, 2016. The fair market value of the house at January 1, 2016 was \$300,000 (land; \$130,000,building; \$170,000). The UCC of the house on this date is \$163,000.Which of the following is correct?