Part C - Details of building and leasehold interest additions in the year

List in this area the details of all buildings and leasehold interest you acquired or improved in the current tax year. Group the buildings and leasehold interests into the applicable Rental - classes of depreciable properties, and put each class on a separate line.

Enter the total cost of the building and leasehold interest additions in Column 3 - Cost of additions in the year, and your personal portion in Column 4 - Proceeds of dispositions in the year. To calculate the rental portion of the cost of the additions, subtract column 4 from column 3, and enter the result in Column 5 - UCC after additions and dispositions.

Enter on line 9927 the total rental portion of the cost of the buildings and leasehold interests. The cost includes the purchase price of the building, or leasehold interest, plus any related expenses that you should add to the capital cost of the building, such as legal fees, land transfer taxes, and mortgage fees. For more information, see Grants, subsidies, and other incentives or inducements.

Land

Generally, land is not a depreciable property. Therefore, you cannot claim capital cost allowance (CCA) on its cost. If you acquire a rental property that includes both land and a building, enter in column 3 of Part C only the cost of the building.

Enter on line 9923 of Part F - Details of land additions and dispositions in the year the total cost of all land additions in the current tax year.

To calculate the building's capital cost, you have to split any fees that relate to the buying of the rental property between the land and the building. Related fees can include legal and accounting fees.

Calculate the part of the related fees that you can include in the capital cost of the building as follows:

Do not split a fee if it relates specifically to the land or the building. Instead, add the amount of the fee to the cost to which it relates, either the land or the building. For more information, see Part F.

Forms and publications

• Guide T4036, Rental Income
• Form T776, Statement of Real Estate Rentals

Related topics

• Rental - Classes of depreciable properties
• Column 3 - Cost of additions in the year
• Column 4 - Proceeds of dispositions in the year
• Column 5 - UCC after additions and dispositions
• Grants, subsidies, and other incentives or inducements

Date modified:

2017-01-03