Rental Property: Capital Cost Allowance and Multiple Owners

Are you considering jointly owning property to rent with one or more other people? Before doing so, it’s important to consider the structure of your ownership agreement.

When two or more taxpayers jointly own a revenue property, it is necessary to determine whether they own the property as co-owners or as partners in a partnership. If a partnership exists, all the partners are subject to the same Capital Cost Allowance claim. Then a partnership allocation of net profits is made. If a co-ownership exists, each owner can claim CCA individually on his/her share of the capital costs.