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At the end of the current year, Sam owned two rental properties, one a residential...

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Accounting

At the end of the current year, Sam owned two rental properties, one a residential Rental property #1 costing $625,000 (land $200,000; building $425,000) and at the close of last year had a UCC of $339,314. Rental property #2 (a Non Residential Building) was acquired in the current year for $910,000 (land $250,000; building $660,000). Revenue and expenses for the rental properties during the year were as follows:

Property #1 Property #2 Total

Revenue $44,200 $76,500 $120,700

Expenses

Mortgage interest (13,000) (19,000) (32,000)

Repairs & maintenance (4,000) (2,000) (6,000)

Property tax (3,500) (4,000) (7,500)

Insurance (900) (1,200) (2,100)

(21,400) (26,200) (47,600)

Income $22,800 $50,300 $73,100

Also during the year Sam spent $3,200 staging property #1 to attract new tenants. A real estate agent spent $700 in advertising costs and charged Sam $2,500 in real estate fees to rent property #2. Determine the maximum CCA deduction for the rental properties for the current year.

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