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Question - Alex acquires a residential rental property on June 1, 2018 at a total cost of $423,000. Of this total, $132,000 can be allocated to the value of the land. He immediately spends $42,000 to make major improvements to the property. Rents received in the year total $32,000. December's rent of $6,400 was received on January 5, 2019 Rental expenses other than CCA total $33,900. This is the only rental property owned by Alex.
The maximum CCA that is available for 2018 is $5,820.
Determine Alex's minimum net rental income for the year.
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