Upgrades on a New Build Rental. Tax deductible?
After filing my taxes, I realized I may have a potentially unclaimed deduction on the upgrades I purchased. The situation is:
- New build home. Rented out starting from my possession date so I've never lived there.
- $1k in upgrades went into the house. Paid in cash outside of the mortgage.
Am I able to claim that $1k in upgrades as a rental expense? If so, is it a simple entry into one of the Rental Income Expense Lines or does it fall under that Capital Cost Allowance section? Also, assuming I used my Line of Credit to pay for those upgrades, is the interest on the money borrowed for those upgrades deductible as well?
Any accountants, or people in the know, able to chime in on this? I'll be checking with my accountant on the weekend but I'm curious to know where I stand before hand.