Rental Properties Tax deductions

[juwantme]

Hey I got some rental properties and apart from the standard deductions (ie lawyer fees, mortgage interest, advertising, property taxes, etc) what else have you guys deducted.

I am also deducting CCA on the property itself and a flooring reno I did- how many years would you cover a flooring reno for under capital expense? Any other CCA that you guys deduct?

I also wanted to do deduct a portion of using my car as I have more than one property this year to collect rent/deal with tenant issues, etc. How did you go about this - I know CRA carefully reviews car related deductions

Thanks I appreciate the help!

[CanmoreOrLess]

An accountant would find all the deductions and in turn be a deduction. He/She might even be able to dig back a few years for the deductions you have missed. If not for the accountant I consulted a while back, I'd have overpaid on my taxes and not received a nice cheque for the previous five years. One more pro on your team along with the lawyer, etc.

[BrknFngrs]

Originally posted by juwantme
I am also deducting CCA on the property itself and a flooring reno I did- how many years would you cover a flooring reno for under capital expense? Any other CCA that you guys deduct?


Ever talked to a professional about the decision to take CCA on this property?

Based on this alone I'd really suggest talking to a professional.

[TomcoPDR]

Originally posted by BrknFngrs


Ever talked to a professional about the decision to take CCA on this property?

Based on this alone I'd really suggest talking to a professional.

:werd: :werd:

BrjnFngers knows what he's talking about.

CCA on the property such a (financially) "dangerous" game to play. Learn the hard way in a lesson on recapture.

[Xtrema]

For the car, do mileage but the mileage you can deduct vs the shit storm you may have during audit may not be worth it.

There is no way you can deduct more than 100km per month unless your properties are out of town. The value is quite low. If shit doesn't break, tenant uses post dates check or interac, you won't be there more than once every 2 months on inspections.

Talk to an tax accountant/professional on CCA. If I recall, (I don't do it), it may have an impact on cap gain when you sell. It really depends on what your rental income is being taxed at to see if it's worth the hassle or risk.

[busdepot]

Yeah, CCA on rental properties is not a good play because when you go to sell it, you're pretty much 100% going to have recapture on it (straight income inclusion, not capital gain income). Home office in your actual residence may be ok, need more details though.

Keep in mind here, that you're basically having someone fund your mortgage. You should have to pay some tax on that. If you can, think about increasing your rent until the point that you're covering the mortgage plus some if not all of the income tax burden on the income (minus any deductions). Then this problem just goes away :thumbsup:

But you should talk to someone one on one who's a professional that does personal taxes. I haven't done them in a good while now so I'm a bit behind on the current rules.

[gamman]

anyone know any home based accountants that as recommended do the above?