You may not create or increase a loss from rental income by claiming capital cost allowance.
When deciding on your equity/financing mix on the purchase of a rental property, remember that the interest paid on a rental property mortgage may reduce your ability to claim capital cost allowance.
A partnership holding rental property is an exception when the individual investor partners finance the property acquisitions outside of the partnership. In this scenario, the full interest amount can be deducted and capital cost allowance claimed on the rental properties, irrespective of the interest deducted by the individual shareholders.
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