Commercial Investment RE Institute One of two (the other SIOR) professional organizations Programs lead to CCIM(Certified Commercial Investment Member) E137,
User - buys property for individual needs or to occupy
Investor - buys property to receive a return on investment and
concerned with current or planned use of property when occupied by rent-paying users.
That is why Property's Value relates directly to current/planned use.
Brokerage task/Analysis include:
determine strength of income stream and expenses usual to this class/type of property
impact of taxation (fed, prov, municipal) on income to be received
In the year you buy a depreciable property,such as a building,you cannot deduct the full cost.However,since this type of property wears out or becomes obsolete over time,you can deduct its capital cost over a period of several years.The deduction for this is called capital cost allowance.
You usually group depreciable properties into classes.For example,appliances and furniture belong to Class 8.You have to base your CCA claim on a rate assigned to each class of property.
For the most common classes of depreciable properties,see
CRA, Rental Income, Classes of depreciable properties.
Commercial
