Part 13 - Building additions in the year

List the details of all buildings you acquired or improved in the year. Group the buildings into the applicable classes, and put each class on a separate line.

Column 4 - Proceeds of dispositions in the year of this chart asks for the personal part of property. This refers to the part that you use personally, separate from the part you use for business. For example, if you use 25% of the building you live in for business, your personal part is the remaining 75%.

Enter the total business part of the cost of the buildings on line 9927. The cost includes the purchase price of the building, and any related expenses you should add to the capital cost of the building, such as legal fees, land transfer taxes, and mortgage fees.

Land

Generally land is not a depreciable property. Therefore, you cannot usually claim CCA on its cost. If you acquire a property that includes both land and a building, enter in Column 3 - Cost of additions in the year of Part 13 only the cost that relates to the building.

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

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

(Building value ÷ Total purchase price) × Legal, accounting, or other fees

You do not have to split a fee if it relates specifically to the land or the building. In this case, you would add the amount of the fee to the cost to which it relates, either the land or the building.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities

Related topics

• Capital cost

Date modified:

2017-01-03