As a result of the recent condo real estate boom in the Greater Toronto Area ("GTA"), there has been an increase in the number of units being purchased by real estate investors. As a result, it is not unheard of today, where most of the units within a condo corporation are being leased out to tenants by absentee landlords. With the rise in condo units being leased, condo corporations had some ability to regulate rentals, via their condo declaration and government regulations.
After Canadian business owners called upon the Canadian government to provide additional incentives to remain competitive with USA competition, new rules were passed, enabling Canadian corporations with the ability to increase the first year amortization for certain eligible property subject to the Capital Cost Allowance (“CCA”) rules. Issue at hand: Until the original rules, amortization capital assets subject to CCA were limited in their first-year to the half-year rule. As