Rental Property

Similar to small business income tax returns, Rental Properties expenses can be claimed for costs associated with maintaining the property. This will help offset the rental income that you receive which must be declared.   

Current expenses can be deducted and items of a capital nature must be capitalized and deducted over the life of the asset.  If you depreciated the building itself this may affect your tax situation when the property is sold.   There can be a gain or loss at that time.  Keep good records for the purchase and sale as well as all expenditures. The CRA can ask for them to support your claim.    

 

The following is a list of expenses that are deductible:

  • Prepaid expenses
  • Advertising
  • Insurance
  • Interest
  • Legal, accounting, and other professional fees
  • Maintenance and repairs
  • Management and administration fees
  • Motor vehicle expenses
  • Office expenses
  • Property taxes
  • Salaries, wages, and benefits (including employer’s contributions)
  • Travel
  • Utilities
  • Other expenses

Not all of these may apply to your individual situation. 

 

List of Expenses you cannot deduct

More on Rental Income on the CRA website