Rental/Vacation Home Case Essay

He sought to deduct various expenses associated with maintaining the office including electricity, gas, repairs and maintenance. These expenses were allowed under s.8(1)(i)(ii) as office rent, but the court did not see them as “supplies” that were “consumed.” However despite this decision, the CRA regards these items as supplies and allows them to be deductible under s.8(1)(i)(iii) ITA. According to CRA Bulletin, paragraphs 9 and 10, supplies in para 8(1)(i)(iii) do not include basic monthly service charge for a telephone line, however, in cases that followed, Prewer v MNR, the taxpayer was able to deduct a percentage of her house, but it had to be reasonable otherwise it would fall under s.67 ITA. The court reconsidered this position in Felton v MNR and said that if you own the home, then you cant deduct rent because “rent” can only arise in a and lord-tenant relationship and here one does not exist. In Haltrecht v Canada, the minister would not allow the deduction of utilities and maintenance costs of the house but in the CRA Interpretation bulletin IT-352R2, they said that they would allow deduction under s.8(1)(i)(ii) they would allow a reasonable deduction of expenses paid by the taxpayer which would include, maintenance of home including, fuel, electricity, light bulbs, cleaning materials and minor

Capital gain or loss that happens to a dwelling that is a taxpayer’s main residence is

In Mason, the taxpayer suffered a severe attack of paralytic poliomyelitis. The cost of installation of a specially designed swimming pool, installed on the advice of a physician to provide hydrotherapeutic treatment for the taxpayer was found by jury to constitute a deductible medical expense and not a nondeductible capital expenditure. The swimming pool in Mason covered an area of thirty by fifteen feet, had a depth of four to six feet, and included a ramp designed to facilitate entry by wheel chair. The jury held for the taxpayer and allowed a deduction of the pool as a medical expense because the design of the pool catered to the taxpayer’s medical needs.

Sale of rental property does not qualify for exclusion 121 because the two year resident occupation limit cannot be satisfied in income producing business property. The sale will fall under section 1231 which encompasses transactions of sales or exchanges of business property held for longer than one year. In order to determine treatment of section 1231 you must combine all section 1231 gains and losses for the year. A net loss is an ordinary loss. A net gain is ordinary income up to the amount of your non-recaptured section 1231 losses from previous years. Any remaining balance becomes a long-term capital gain. The formula for calculating gain or loss involves subtracting the cost basis from the selling price. If you have taken depreciation on the property in the past and are

In order to determining how the $300,000 fee was received as Federal income on the part Mrs. John Smith, we first have to determine the requirements for income. According to Code Sec. 61(a)(1) of the Internal Revenue Code (IRC) “gross income includes all income from whatever source derived,” that is including the following items: compensation for services, including fees, commission, fringe benefits and similar items (Intuit-TaxAlmanac, 2006). In John’s case, income received from fees that were paid by his client from rendered services will meet that requirement of gross income. Under Section

Michala Smith is a single taxpayer, who was gifted a house and 10 acres in the rural area outside of Whitewater. She built a building and started a small country store/bakery on the property. She has made enough income from the store to support herself and save. Michala does not like the idea of paying taxes. She would like to know the best way to structure her sale to meet her goals, which include avoiding taxation and moving on to a different business, such as a bed and breakfast. We recommend that Michala take advantage of Section 121 when selling her home, so that can exclude $250,000 of the gain on the sale. We also recommend that she defers the gain on the sale of her business and land by exchanging it for a bed and breakfast, using

Thus, a capital expenditure which is related only to the sick person and is not related to permanent improvement or betterment of property, if it otherwise qualifies as an expenditure for medical care, shall be deductible; for example, an expenditure for eye glasses, a seeing eye dog, artificial teeth and limbs, a wheel chair, crutches, an inclinator or an air conditioner which is detachable from the property and purchased only for the use of a sick person, etc. Moreover, a capital expenditure for permanent improvement of property may qualify as a medical expense to the extent that the expenditure exceeds the increase in the value of the related property, if the particular expenditure is related directly to medical care. Such a situation could arise, for example, where a taxpayer is advised by a physician to install an elevator in his residence so that the taxpayer's wife who is afflicted with heart disease will not be required to climb stairs. If the cost of installing the elevator is $1,000 and the increase in the value of the residence is determined to be only $700, the difference of $300, which is the amount in excess of the value enhancement, is deductible as a medical expense. If, however, by reason of this expenditure, it is determined that the value of the residence has

No tour of America’s scenic parks is complete without a foray into the outdoor offerings of old Kentucky. And if you want a real view of the real beauty that makes Kentucky’s natural scenery so spectacular, you can’t beat Scenic Cabin Rentals for an immersed vacation rental experience in Red River Gorge, Natural Bridge State Park, or Daniel Boone National Forest.

A property is one of the biggest investments for every individual. House owners want to give their property to reliable tenants who can keep it in tip-top condition. However, finding trustworthy renters is not always easy. A reliable renter is a blessing, whereas troublesome occupants can create a lot of problems for you, including destroying the property, not paying rent on time, etc. Below are some of the simple tips about advertising, getting background and credit checks for landlords, and having a solid lease agreement:

The pie charts show a comparison between lodging in London in 1990s and lodging in London in the 2010s for people who are age is 25 years. Moreover, the table shows residential buildings in London in 1990s and in 2010 onwards. In 1990s and 2010 a common house was the highest percentage. Living at home and apartment alone was the lowest percentage while common house and flat was the highest percentage in the 2010s. On the other hand in the 1990s the lowest percentage is living at home alone while the highest percentage is living with parents. During the 1990s and the 2010s was decreasing of living at flat alone and living with parents. In the 2010 onward cheaper cost than in the 1990s except living at home contains 3-4 bedrooms. In 2010

Are you thinking about building a vacation cabin? Do you have the land bought, but you've only just now realized that you will need a source of water? While you can bring in bottled water, it's probably a much better idea to have a well dug for you. But before you go making any set plans, here are some things you might want to know about water well drilling:

I'm arriving in the US on Aug 26th, and I'm looking for a room for $500-800/month located no more than 30 mins from NJIT. Probably you know someone who is looking for a roommate or a rental agent who can help me with this. Also, if you don't mind, maybe you can advise me a district where most of the students prefer renting apartments and why.

The online home rental site Airbnb has revolutionized the way how vaction rentals get booked in southwest Florida. Here is the list of some highest rated places on the site for which you are looking for.

The only sound that filled my ears was my keyboard clicking as my fingers raced across it. I had been procrastinating from finishing this assignment all evening, but I knew I needed to get it done. The burning sunset was shining through the windows as I was finishing up. It was a peaceful silence, until I heard the soft whispers of my parents that ignited my sense of curiosity. I was concentrating hard; doing my best trying to make out the hushed words that were being spoken.

Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.