Area C – Building additions in the year
List in this area the details of all buildings you acquired or improved in the current tax year. Group the buildings into the applicable classes and put each class on a separate line.
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, and any related expenses you should add to the capital cost of the building, such as legal fees, land transfer taxes and mortgage fees. For more information, go to Grants, subsidies, and other incentives or inducements.
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 only the cost of the building in column 3 of Area C.
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 you can include in the capital cost of the building as follows:
building value ÷ total purchase price × legal, accounting, or other fees = the part of the fees you can include in the building's cost
You do not have to split a fee if it relates only to the land, or only to 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. For more information, go to Area F – Land additions and dispositions in the year.
Enter on line 9923 of Area F the total cost of acquiring land in the current tax year.
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