Do not claim CCA or depreciation on pool - Bulletin IT120R6 Fedel Saccomanno tax free triplex -

QUESTION: Our principal residence has a basement apt. which we have been declaring rental income from the past 10 yrs. The split is 66/33 as to expenses. The tenant has full use of the backyard and this year we put in an inground pool. Can we claim the pool as CCA (66/33)? If so what class is it? This will be our 1st year declaring CCA and the documentation we have found (IT-472, #8h) says filtration systems for outside pool, pool-light, wiring,etc. is Class 8, unless included as a component part of the pool (Class 6)...but when we read up on Class 6 there is no mention of swimming pools..very confused...they don't make it easy!
david ingram replies; 
If you built the pool for the  sole benefit of the tenants, you can 
deduct 100% of the chemicals, electricity, repairs, filtration and 
depreciation (CCA) on the pool. If you intend to use it personally for 
your family or friends even just 'one' day of the year, you can NOT 
deduct anything for the pool including the electricity filtration, 
chemicals or increased water bill.  NO DUAL USE PORTION OF A HOUSE IS 
DEDUCTIBLE on a rental statement when the other user is the owner of the 
My own house is a good example.  Those who have been here know that I 
work upstairs in the Living Room 90% of the time.  It is where I meet 
weekday clients and it is where I answer emails and work into the wee 
hours of the morning.  No protion of the room where I do 90% of my work 
is deductible.  Neither is any part fo the upstairs bathroom which is 
used by family and clients.
On the other hand, most of the ground floor is business oriented except 
for one bedroom.  The entrance is not deductible with a table and a 
large photocopier, filing cabinet and stapling, hole punching stuff and 
enveopes and paper, etc., because you have to go throuogh the entrance 
to get to my daughter's bedroom and the upstairs of the house.
NEXT AND MORE serious.  If you claim CCA on part of the structure of a 
rental house that you live in, you are making that portion of the house 
subject to Capital Gains Tax.  Read the CRA Bulletin IT120R6 paragraph 
This is not law, it is policy but you can clearly see that if you claim 
CCA, the policy is to tax the building and I have seen this many times.  
On the other hand, I have never personally seen the CRA tax a duplex or 
a triplex or four-plex where the owner lives in one of the suites 
because of the Saccomanno Case in 1986.
* In 1986, Fedel Saccomanno /won/*  the sale of his home as a tax free 
capital gain as his principal residence. He had bought a triplex with 
two units rented out, and lived in the third unit with his wife on 
weekends when he was not teaching at the University of Waterloo. When he 
did not get tenure at Waterloo, and sold the property, DNR tried to tax 
two-thirds of the profits. Judge Taylor ruled that the entire triplex 
was tax free, giving credence to my claim in my Investment Guide. In the 
Investment Guide, I suggest that people with duplexes and triplexes 
should claim the whole building tax free in spite of the fact that 
Bulletins IT 120R2 and R3 stated that half a duplex and two thirds of a 
triplex would be taxable.
On February 11, 2008, David Ingram wrote:
It is very unlikely that blind or unexpected email to me will be 
answered.  I receive anywhere from 100 to 700  unsolicited emails a day 
and usually answer anywhere from 2 to 20 if they are not from existing 
clients.  Existing clients are advised to put their 'name and PAYING 
CUSTOMER' in the subject line and get answered first.  I also refuse to 
be a slave to email and do not look at it every day and have never ever 
looked at it when I am out of town.  */e bankruptcy expert  US Canada 
Canadian American  Mexican Income Tax  service and help/*
However, I regularly search for the words"PAYING CUSTOMER" and always 
answer them first if they did not get spammed out. For the last two 
weeks, I have just found out that my own email notes to myself have been 
spammed out and as an example, as I wrote this on Dec 25, 2007 since 
June 16th, my 'spammed out' box has 47,941 unread messages, my deleted 
box has 16645 I have actually looked at and deleted and I have actually 
answered 1234 email questions for clients and strangers without sending 
a bill.  I have also put aside 847 messages that I am maybe going to try 
and answer because they look interesting. -*/e bankruptcy expert  US 
Canada Canadian American  Mexican Income Tax service and  help/*
Therefore, _if an email is not answered in 24 to 48 hours, it is likely 
lost in space_.  You can try and resend it but if important AND YOU 
TRULY WANT OR NEED AN ANSWER from 'me', you will have to phone to make 
an appointment.  Gillian Bryan generally accepts appointment requests 
for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, 
Portland, Los Angeles) time at (604) 980-0321.  */david ingram expert  
US Canada Canadian American  Mexican Income Tax  service and help./*
/david ingram's US / Canada Services/
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
*(604) 980-0321* Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week  Vancouver (LA) time - 
 (please do not fax or phone outside of those hours as this is a home 
office) */expert  US Canada Canadian American  Mexican Income Tax  
service help./*
 email to taxman at <mailto:taxman at> <> 
Disclaimer:  This question has been answered without detailed 
information or consultation and is to be regarded only as general 
comment.   Nothing in this message is or should be construed as advice 
in any particular circumstances. No contract exists between the reader 
and the author and any and all non-contractual duties are expressly 
denied. All readers should obtain formal advice from a competent and 
appropriately qualified legal practitioner or tax specialist for expert 
help, assistance, preparation, or consultation  in connection with 
personal or business affairs such as at 
<>. If you forward this message, this disclaimer 
must be included." */e bankruptcy expert  US Canada Canadian American  
Mexican Income Tax  service and help./*
David Ingram gives expert income tax service & immigration help to 
non-resident Americans & Canadians from New York to California to 
Mexico  family, estate, income trust trusts Cross border, dual citizen - 
out of country investments are all handled with competence & authority.
*Phone consultations are $450 for 15 minutes to 50 minutes (professional 
hour). Please note that GST is added if product remains in Canada or is 
to be returned to Canada or a phone consultation is in Canada. ($472.50 
with GST if in Canada)**/ /**/expert  US Canada Canadian American  
Mexican Income Tax  service and help./*
This is not intended to be definitive but in general I am quoting $900 
to $3,000 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you 
lived in one country only (but were filing both countries) - no self 
employment or rentals or capital gains - you did not move into or out of 
the country in this year.
$1,200 would be the same with one rental
$1,300 would be the same with one business no rental
$1,300 would be the minimum with a move in or out of the country. These 
are complicated because of the back and forth foreign tax credits. - The 
IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,600 would be the minimum with a rental or two in the country you do 
not live in or a rental and a business and foreign tax credits  no move 
in or out
$1,700 would be for two people with income from two countries
$3,000 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection 
period) with two or three slips and no capital gains, etc. for $200.00 up.
With a Rental for $400, two or three rentals for $550 to $700 (i.e. $150 
per rental) First year Rental - plus $250.
A Business for $400 - Rental and business likely $550 to $700
And an American only (lives in the US with no Canadian income or filing 
period) with about the same things in the same range with a little bit 
more if there is a state return.
Moving in or out of the country or part year earnings in the US will 
ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that 
when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales)  are likely $50.00 for the first and $20.00 each 
after that.
*Catch - up returns for the US where we use the Canadian return as a 
guide for seven years at a time will be from $150 to $600.00 per year 
depending upon numbers of bank accounts, RRSP's, existence of rental 
houses, self employment, etc. Note that these returns tend to be 
informational rather than taxable.  In fact, if there are children 
involved, we usually get refunds of $1,000 per child per year for 3 
years.  We have done several catch-ups where the client has recieved as 
much as $6,000 back for an $1,800 bill and one recently with 6 children 
is resulting in over $12,000 refund. 
This is a guideline not etched in stone.  If you do your own TDF-90 
forms, it is to your advantage. However, if we put them in the first 
year, the computer carries them forward beautifully.
This from "ask an income trusts tax service and immigration expert" from <> or 
<> or 
<>. David Ingram deals on a daily basis with 
expatriate tax returns with multi jurisdictional cross and trans border 
expatriate problems  for the United States, Canada, Mexico, Great 
Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, 
Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, 
Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, 
Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, 
Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, 
Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of 
the 43 states with state tax returns, etc. Rockwall, Dallas, San 
Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income 
Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica 
Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 
Non-Resident Real Estate tax specialist expert preparer expatriate anti 
money laundering money seasoning *FINTRAC E677 E667 105 106 TDF-90 
Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe 
South Africa Namibia help USA US Income Tax Convention. Advice on 
bankruptcy  **/e bankruptcy expert  US Canada Canadian American  Mexican 
Income Tax service and help ./**
David Ingram expert income tax service and immigration help and 
preparation of US Canada Mexico non-resident and cross border returns 
with rental dividend wages self-employed and royalty foreign tax credits 
family estate trust trusts income tax convention treaty advice on bankruptcy
New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, 
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Aries, Squamish, Churchill, Lima, Santiago, Abbotsford, Cologne, 
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Falls, Atlin, Fort Nelson, Fort St James, Red Deer, Drumheller, Fortune, 
Red Bank, Marystown, Cape Spears, Truro, Charlottetown, Summerside, 
Niagara Falls, income trust, Income Tax Treaty Convention. -*/ e 
bankruptcy expert  US Canada Canadian American  Mexican Income Tax  
service and help./*
*/david ingram International non-resident cross border expert income tax 
service & immigration help estate family trust assistance expert 
preparation & immigration consultant, income trusts experts on rentals 
mutual funds RRSP RESP IRA 401(K) & divorce preparer preparers 
consultants Income Tax Convention Treaty.  /**/advice on bankruptcy 
expert  US Canada Canadian American  Mexican Income Tax help.
Be ALERT,  the world needs more "lerts".  */ bankruptcy expert  US 
Canada Canadian American  Mexican Income Tax service help./*  - expert 
us Canada Canadian Mexico income tax service and help  help


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