If you’ve made a real estate investment by purchasing a rental property then you will want to know all of the many tax deductions available to you.
If you collect rental income from investment property, you will want to complete Form T776. This is where you claim your rental income, and where you can also claim deductions against this income.
Here are some of the deductible expenses listed by Canada Revenue Agency:
It is important to note that you cannot deduct the value of your own labour, whether it is doing repairs, landscaping, or any other work you may do on your rental property.
If you live in your income property you can only deduct expenses from the portion of the house that is rented. Other expenses are considered personal expenses.
Another big expense category you may be able to deduct is vehicle expenses. To qualify you must meet the following conditions:
If you own ONE rental property
If you Own TWO OR MORE rental properties you can additionally deduct expenses incurred while:
These expenses can be deducted whether your properties are in our outside your general area. However, the rental properties must be located in at least two different sites.
For a complete list of real estate investment deductions please visit Canada Revenue Agency.
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