IT-195R4 "Rental Property - Capital Cost Allowance Restrictions"

2. Accordingly, if a taxpayer has more than one class of rental properties, the CCA restriction is not applied to the individual classes of rental properties but rather to the total CCA that may be claimed against all the taxpayer's rental properties. The entire CCA claim for all the properties must not exceed the total of the rental income from all properties less the total of the rental losses from the properties. Any recapture of CCA is included in computing these totals. In computing the amount of CCA allowable where a terminal loss has occurred, it will be necessary to deduct the terminal loss first and then to claim ordinary CCA to the extent, if any, of the remaining net rental income from all properties.

Principally based on time

4. ...[T]he word "principally" means "primarily" or "chiefly." In establishing whether a property is used principally for a given purpose, one of the main factors to be considered is the proportion of time that the property is used for that purpose. If the property is used more than 50 percent of the time for the purposes of gaining or producing gross revenue that is rent, that pattern of use is a good indication that the property is used principally for that purpose. Another important factor to be considered is the proportion of the amount of space rented in relation to the total area of the building. ...

Examples of application of extended meaning of rent under Reg. 1100(14.1)

6. ...[G]ross revenue that is rent will include revenue derived from a property such as a hotel, motel or nursing home operation, where it is established that such revenue is ancillary to the use or occupation of the property. On the other hand, if the services offered (for example, medical care in a nursing home) are such that they go beyond being merely ancillary to the use and occupation of the property, gross revenue derived from such services is not considered to be rent derived from the property.