Typical Example: The Popular 29 Foot Class C

A $84,900 Motorhome is purchased with $5,000.00 down and the balance is financed at 7.5%

Operation During the First Year
Cash Inflow: Rental Income for 14 weeks at @ 60% = $11,970.00


Cash Outflow:   Deductible Expenses:
Finance Payments
Insurance
Service
$ 7,724.00
$ 2,500.00
$ 250.00

$ 10,474.00 		  Interest on Financing
Insurance
Service
Capital Cost Allowance 		$ 5,631.00
$ 2,500.00
$ 250.00
$ 3,589.00
$11,970.00

 

Cash Inflow - Cash Outflow = Total Tax Free Profit
$11,970.00 - $10,474.00 = $ 1,496.00


Under the current tax system, capital cost allowance can be used with other allowable
deductions to equal total cash inflow. The above is a hypothetical example.
All figures are subject to change. Toronto RV and its affiliates make no guarantee as to the
actual number of rental weeks or income.