a capital cost allowance in the
case of a rental.) You rent
three rooms out of a total of
10, so 30 per cent of this, or
$16,500 can be used to
calculate a capital cost
allowance.

On most buiidings, you
can claim a five per cent
allowance. is calculated on capital cost allowance per
this depreciated amount. year, which in this example

If you are only renting part would come to $825 for 1984.
of. your home, you can only (If you purchased the home
claim: a ‘fraction’ of the after Nov. 12, 1981,
building’s capital cost however, only half of the
“allowance: ‘Start by getting a capital cost allowance is
“fair market value’’ forthe claimable in the-first year.)
building “forthe. year you .. The'value of the rental unit
> began-renting. You.can-then:. then depreciates to $15,675
. claim a‘capital cost allowance « (316,500-$825),
‘on: the ‘fraction of this value . another five per cent capital
that applies to the rental unit.. .cost allowance can be claim-
Here’s an example: You ‘ed for 1985.
started’ renting in’1984, and There are a couple of cat-
the'value of your-property in . ches to using the capital cost
that te was $80,000. Of allowance, however. The first
is that it can never be used to
create a loss -.only to reduce
rental income to zero. The se-

on the North Shore are illegal, the rent they
earn still constitutes taxable income.

LISA SMEDMAN

and in the next year the
claimable capital cost

eo, E: THOUGH most of the basement suites

i “AS the. landlord of one of
, these suites, you may not be
.Yeporting this income: In ef-
_ fect, taxes will be paid on this

money twice when you do
declare it'= once when it is

earned by your tenant, and
Once as your rentai income. :

- Legally, however, ‘you
. should be declaring this in-

‘come, even if. you. just rent,

Eel DID
TT ALL G0?

; Are taxes reducing your
~: term deposit profits?

‘There are alternatives.
‘offering: higher: returns, .
“flexibility. and lower i income 4
taxes. -

“DAVE CALJOUW
205255

| Value today: $74, 800 7

oS ‘Investor location: Vancouver, B.C.
Fund selected: Industrial Growth Fund
Investment made: March 1977 -
Total invested: $20,225.00
7 Nalue (December 1, 1984): $74,842. 00.

jas your RRSP done this well? :
: Hit hasn't, you owe if to yourself to find put more about
: industrial Growth Fund and what it has achieved on behalf of more
: 100.000 Canadian investors.
é example we've shown isan unsheltered i investment, And
“4 't guarantee the same results for you. But. then, long-term |
past performanice is the best guide to the future. Industrial Growth’s
record over the past 17 years speaks for itself, And its manager.
Mackenzie Financial Corporation. is wry optimistic about the
wears tocome. ‘
‘For the complete story an Industrial Growth Fund RRSP,
neluding a comparison with other investments; return the coupon °
_ below; or call. Today!

eee net ig

perform. these ire and the. |
vean’t be: abnormally

mee Please send m me information on what Industrial Growth Fund co mean
» tomy retirement planning. :

. NAME
"ADDRESS.

. “POSTAL ,
PROV, CODE a

: oC TRESIDIENCEL,

. ne Oe aS Oey SS RD ES TS ND SR Co aN DRS me eA eES meme Come

* gee87a7
: 561 Croydon Place, North Vancouver
VIN 2: 229

ver, must: remain cons-
each, year. See
ne, major . deduction, you
an rake from rental income :-:} .
‘is;called “a: : capital ., cost .
_ “allowance. Itvis ‘designed to.
_ callow’ for. the depreciation of
“buildings, ‘major: fixtures (ie:
fridges, stoves), “and some -
outdoor structures. Each tax
‘year, you can claim a perces-. |
"tage of the total cost of these

“Offer made only ‘by prospectus.

Illegal suites taxable

on which -

-as a principal residence.

cond is that, should you sell
the house or return the rental
suite to your own use, you
may generate a taxable
capital gain in that year.
However, as soon as you
convert part ef your home to
a rental suite and move in
tenants, that part is no longer
part of your ‘principal
residence."’ (Money earned
on the sale of a principal

residence is not taxable.) This |

means that a fraction of the
money made on.a fvture sale

of the home will be taxable. .
So'you might as well take ad-'

vantage of the capital cost
allowance deduction.

You can deduct - capital
cost allowances for fixtures,
which depreciate at a rate of
20 per cent per year. Fences,
greenhouses and too! sheds
have a capital cost allowance
of 10 per cent, but again, .on-
ly part of this is-claimable if
the’ use of them: is. shared.

Home owners also have the

_, option of renting their entire

house for up to four years
(not necessarily consecutive-
jy) without it losing its status

‘How Successful you are or can be.as a real

| North Shore
| Credit Union.

Seven convenient locations to serve you.

Feation i your Community

B7 - Sunday, February 3, 1985 - North Shore News

PREPARE.YOURSELF
FOR A CAREER ~
IN REAL ESTATE

*PRELICENSING COURSES
*POSTLICENSING COURSES
*ONGOING TRAINING

Classes are conducted by full-time Professional
‘educators al our Training Centre,- field training.
by our branch managers. : ;

estate sales person depends greatly on the
company that is behind you. Ensure your, © :".-
success by working for a. Company that offers ;
essential backup services, is Nationwide and °
will give you the personalized training that you: ;
need. .
Royal LePage is Canada’ s leading real esiate
company with offices across Canada, the... -
U.S. and in Europe. Call for i more ‘information. °
Nerth Vancouver . West. Vancouver ::
-- Chuck Traunweiser = - Peter, Bakonyi

985-9544 “926-6011:
Harold Dueck. “Bob Norquay.
985-8321 + 925: 14410