Hi Lane, I know your moving on from this deal, but I did not read anyone mention the most important key parts in a commercial residential allocation so I am gonna throw a few factors on how I do it.

You've allocated $0 for maintenance because they were just renovated?

I believe you have possibly underestimated your expenses on you current investment property and should raise them to at least 40% to be more accurate.In addition, unless I am wrong you have not allocated any value to the equity you have in the property.

This allows you to claim bigger amounts of depreciation in the earlier years of ownership by allocating different assets within the property to shorter depreciation lives (5,7,15 year life) as opposed to waiting 27.5/39.

You have 4 years of school left, figure you allocate $30k a year to paying down the debt, that is another 8 years, and then at least 10 more years in the field. 

Once a year I go through all the recurring expenses and update if any have increased to make sure the correct amounts are allocated for those items.  

If the stars align for you , you can take the 1/3rd primary allocation as cash tax free. 

Of that $465k allocated to 5-year property, $18k to 7-yr, $132k to 15-yr, and $1.3 million to 27.5-yr.

The simple fact is that the city of vancouver is understaffed and bogged down in its own red tape that densifying, rezoning and pushing through building and development permits far quicker is what they should focus on instead of empty condos and allocating staff to door knocking and enforcement.

When the LLP recognizes income, it is allocated to its members which increases a member’s basis in the LLP.