Magrath Real Estate Accountant - Bomcas Accounting

Bomcas Accounting Magrath Real Estate Accountant Bomcas Accounting we specializes in Bookkeeping, Payroll for Corporate, Small and Medium size Business and Tax preparation and filing for Corporation, sole proprietorship and individual personal tax. We serve clients throughout Magrath and surrounding areas. Local and virtual accounting services provided in order to help client that is unable to visit locally.

Our experience and qualify team have been providing Accounting and Tax service for more than 15 years. When you are looking for a one stop accounting and tax services, we are there to provide a complete solution package for you.

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Real Estate Accounting and Tax Services

Our Accountant are expert at helping real estate investors to structure their operations and investments in a tax efficient manner. Our professionals participate in budget, planning, investment and tax reporting activities, and help real estate investors to make wise decisions

Rental income

Rental income is any payment you receive for the use or occupation of property such as house, apartments, rooms, space in an office building, real or movable property etc.

Rental income

Rental income – income you earn from renting a property that you own.

Rental operation

Rental operation – services you provide within your rental property to your tenants such as heat, lighting, laundry, cleaning or security.

Rental property

Rental property – generally, a building or certain leasehold interests owned by a taxpayer(s) or a partnership that is mainly used to generate gross revenue from rent.

A rental property, other than a building, usually becomes available for use on the earliest of:

the date you first use it to earn income
the time just before you dispose of the property
the date when a fully constructed building is purchased or construction of the building is completed
the second year after the year you acquired the building
the second year after the year you acquired the rental property
A rental property that is a building, or part of a building, usually becomes available for use on the earliest of:
the date that you rented out 90% or more of the building
the time just before you dispose of the building

When determining the available for use date, a renovation, an alteration, or addition to a building should be considered as a separate building.You may be able to claim CCA on a building that is under construction, renovation, or alteration before it is available for use. You can deduct CCA that you have available on such a building when you have net rental income from it. The CCA that you can deduct is restricted to the amount of net rental income you have after you deduct any soft costs for constructing, renovating, or altering the building. For an explanation of soft costs, see Construction soft costs.Capital cost – the amount on which you first claim capital cost allowance (CCA). The capital cost of a property is usually the total of the following:

Capital cost

the purchase price (not including the cost of land, which is not depreciable)

Capital cost

the part of your legal, accounting, engineering, installation, and other fees that relate to buying or constructing the property (not including the part that applies to land)

Capital cost

the cost of any additions or improvements you made to the property after you acquired it, if you did not claim these costs as a current expense (such as modifications to accommodate persons with disabilities)

Capital cost

for a building, soft costs (such as interest, legal and accounting fees, and property taxes) related to the period you are constructing, renovating, or altering the building, if these expenses have not been deducted as current expenses

For more information on current expenses, see Current or capital expenses.

Legal and accounting fees for buying a rental property are allocated between the cost of the land and the capital cost of the building. If land is acquired for rental purposes or for constructing a rental property, the legal and accounting fees apply to the land.

Capital cost allowance (CCA) – you may have acquired depreciable property like a building, furniture, or equipment to use in your rental activity. You cannot deduct the initial cost of these properties in the calculation of the net income of the rental activities for the year. However, since these properties wear out or become obsolete over time, you can deduct the cost over a period of several years. This deduction is called CCA.

Capital property – generally any property, including depreciable property, you buy for investment purposes or to earn business income. Common types of capital property include principal residences, cottages, stocks, bonds, land, buildings, and equipment used in a business or rental operation.

Magrath Real Estate Accountant