Each Rental Property That Is Owned by an Individual That

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The Answer is The goal here is to ensure that the individual is not able to escape recapture when he disposes of the property. Rental properties often have a fair market value that exceeds their UCC. If each such asset is in a separate CCA class, when the asset is sold and the proceeds of disposition are subtracted from the UCC, the result will be a negative balance that must be taken into income. If the property was not allocated to a separate CCA class, this result could be avoided by simply acquiring another rental property and adding its cost to the CCA class. As recapture only arises if there is a negative balance at the end of the period, there would be no recapture if this addition eliminates the deficit in the CCA class.

Each Rental Property That Is Owned by an Individual That

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Each Rental Property That Is Owned by an Individual That

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