- All expenses to operate, maintain and repair the rented premises are deductible
- Total rents charged excluding HST.
- You must register for HST if your annual rent revenue exceeds $30,000.
- Rental losses cannot be applied against other income. Rental properties are treated as investment income
- Depreciation is deductible – rate depends on type of construction
- Automobile expenses including depreciation are deductible based on business miles driven.
- Receipts required for gas, oil, repairs, insurance licenses
- A portion of space in your home is deductible if you use an office.
- Home insurance, taxes, repairs, phone, internet, utilities, equipment rentals are deductible.
For efficient tax return preparation you need to supply a summary of all these expenses, the original cost and purchase date of buildings and vehicle. If possible use an excel spreadsheet to summarize.
Peter Black CPA CA
Glastonn & Associates