Quantcast
First year as landlord - Beyond.ca - Car Forums
Page 1 of 3 1 2 ... LastLast
Results 1 to 20 of 54

Thread: First year as landlord

  1. #1
    Join Date
    May 2007
    Location
    Edmonton
    My Ride
    FERD RS
    Posts
    1,335
    Rep Power
    8

    Default First year as landlord

    Did not want to hijack the other thread on COVID19 mortgage benefits/deferrals...

    But, 2019 was my first year as a landlord, I am told i can write off (mortgage, prop tax, condo fee, home insurance, and any other associated expenses). Is this just mortgage interest or all expenses?
    Is there truly a benefit to deferring mortgage payments for tax purposes? Don't really see the benefit of incurring interest...
    Focus RS: @780_rs
    ---------------------------
    Sponsored by:
    That Fog Light Guy: Use promo code "780rs" for 15% off store-wide

  2. #2
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    I am curious on this too and found this helpful. But any real world tips and advice would be nice.

    https://rentals.ca/blog/tax-deductio...aim-but-should

  3. #3
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    2006 Nissan Titan
    Posts
    114
    Rep Power
    0

    Default

    You can only write off the mortgage interest. Not the principal portion of the payment. Also, keep any receipts for repairs/maintenance. You can claim them. Most likely you can write off a potion of your vehicle expenses/fuel, but it's typically not worth tracking it. (Only whats used to collect rent) condo fees, if you have them are also a good write off. Office supplies/advertising/cleaning expense, yep write that off too. Lots of little things.

    Edit...the above article talks about pretty much everything I just said....
    Last edited by arcticcat522; 03-22-2020 at 02:00 PM.

  4. #4
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    Wonder how many people are taking a loss for rental income.. I mean depending on your mortgage interest and condo fees, it could very well be over your monthly rent income

  5. #5
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    2006 Nissan Titan
    Posts
    114
    Rep Power
    0

    Default

    Depends how you think about it. I am cash flow negative for the past few years. But I gain more equity than I am negative cash flow.....well, maybe. With how much the value of the unit has gone down. I'm in too deep and I have no problem holding until things turn around. Just hope it's in my lifetime.

  6. #6
    Join Date
    Mar 2009
    Location
    Calgary
    My Ride
    Silverado
    Posts
    2,515
    Rep Power
    15

    Default

    Can claim ptax as well
    Quote Originally Posted by Gestalt View Post
    Im the one with a learning disability....

  7. #7
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    Quote Originally Posted by arcticcat522 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Depends how you think about it. I am cash flow negative for the past few years. But I gain more equity than I am negative cash flow.....well, maybe. With how much the value of the unit has gone down. I'm in too deep and I have no problem holding until things turn around. Just hope it's in my lifetime.
    Negative cash flow and claiming a rental loss is 2 different things though. I am saying how many people actually taking a rental loss on taxes. Seems difficult unless you are paying a ton of condo fees/mortgage interest as well as utilities.

  8. #8
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    2006 Nissan Titan
    Posts
    114
    Rep Power
    0

    Default

    Quote Originally Posted by Disoblige View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Negative cash flow and claiming a rental loss is 2 different things though. I am saying how many people actually taking a rental loss on taxes. Seems difficult unless you are paying a ton of condo fees/mortgage interest as well as utilities.
    Right, misunderstood. I think I had a loss for tax purposes 1 or 2 years. Very minor tho.

  9. #9
    Join Date
    Apr 2006
    Location
    Cowtown
    My Ride
    10' 4Runner SR5
    Posts
    6,060
    Rep Power
    20

    Default

    Quote Originally Posted by Disoblige View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Negative cash flow and claiming a rental loss is 2 different things though. I am saying how many people actually taking a rental loss on taxes. Seems difficult unless you are paying a ton of condo fees/mortgage interest as well as utilities.
    I was putting in almost $400/month because of the change in the rental market. Condo fees have really been going up mainly from condo insurance going through the roof (expected +45% next year!).

    If you've owned the property for awhile and/or refinance to get your monthly payments lower it's easy to see how everything could be covered. Bit between property taxes and condo fees, coupled with a significantly depressed rental market, it's not hard to see how when all said and done, some landlords are putting in their own dollars.

    If I had to buy all over again, I'd buy a house and suite the basement. Apparently paying $1,000-1,200 is reasonable for a basement suite
    Follow me on Instagram and Facebook!

  10. #10
    Join Date
    Jul 2010
    Location
    Not the NE
    My Ride
    ĎBerta Special
    Posts
    4,864
    Rep Power
    23

    Default

    This has always made me wonder, does a financial mortgage product exist to still secure aggressive interest rates but never pay the principal?

    I mean there really is no incentive (from a tax perspective) to pay down principal on a rental?
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.

  11. #11
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    Quote Originally Posted by msommers View Post
    This quote is hidden because you are ignoring this member. Show Quote
    I was putting in almost $400/month because of the change in the rental market.
    You were claiming $400/month rental income tax loss?
    Seems like a lot, which means your negative cash flow would be even more than $400?

    Anywho, I don't mean to derail. Current landlords should list what you are actually deducting to make it useful for first year landlords. Give examples if possible.

  12. #12
    Join Date
    Jan 2017
    Location
    Calgary
    My Ride
    2006 Nissan Titan
    Posts
    114
    Rep Power
    0

    Default

    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    This has always made me wonder, does a financial mortgage product exist to still secure aggressive interest rates but never pay the principal?

    I mean there really is no incentive (from a tax perspective) to pay down principal on a rental?
    Don't think something like that exists, but, HELOC/re finance when enough equity is there.

  13. #13
    Join Date
    Apr 2004
    Location
    Calgary
    My Ride
    2013 Q5
    Posts
    1,793
    Rep Power
    13

    Default

    2019 was first year for my rental. I am using the following expenses:
    - mortgage interest
    - condo fees
    - utilities while it was vacant
    - insurance
    - property tax
    - rentfaster listing fee
    - bathtub reglazing
    - window replacement (yes I know this is borderline CCA but I was replacing a window that was leaking and it was very basic picture window that I donít think will add value to property so Iím hoping this wonít be an issue for only $800 cost)
    - unfortunately didnít save receipts for paint and other materials while I was prepping it for rent but I did would definitely use these
    - considering adding my tax software fee. Anyone else do this???

    All in all Iím looking at a rental loss this year but next year it will be in the black barring any unexpected maintenance costs.

  14. #14
    Join Date
    Jan 2008
    Location
    Duplex city
    My Ride
    Phanbus
    Posts
    7,283
    Rep Power
    35

    Default

    You can claim tax preparation fees on personal income tax anyway, rentals or not.

  15. #15
    Join Date
    Apr 2004
    Location
    Calgary
    My Ride
    2013 Q5
    Posts
    1,793
    Rep Power
    13

    Default

    Quote Originally Posted by ExtraSlow View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You can claim tax preparation fees on personal income tax anyway, rentals or not.
    Are you sure about that? According to this link it’s only allowed for self employed or rental income (guess this answers my question)
    https://www.google.ca/amp/s/turbotax...enses-5421/amp

  16. #16
    Join Date
    Jan 2008
    Location
    Duplex city
    My Ride
    Phanbus
    Posts
    7,283
    Rep Power
    35

    Default

    Quote Originally Posted by sabad66 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Are you sure about that? According to this link it’s only allowed for self employed or rental income (guess this answers my question)
    https://www.google.ca/amp/s/turbotax...enses-5421/amp
    Well fuck me, looks like I was wrong.

  17. #17
    Join Date
    Apr 2006
    Location
    Cowtown
    My Ride
    10' 4Runner SR5
    Posts
    6,060
    Rep Power
    20

    Default

    Quote Originally Posted by Disoblige View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You were claiming $400/month rental income tax loss?
    Seems like a lot, which means your negative cash flow would be even more than $400?

    Anywho, I don't mean to derail. Current landlords should list what you are actually deducting to make it useful for first year landlords. Give examples if possible.
    Total cost of everything (mortgage, condo fees, insurance, property taxes) = rental income + my $$ to cover it all. Even still I was positive when it came to tax time so the government is happy.

    It sucked, let me tell you. But I felt ever so slightly fine with it because I knew I wasn't alone. And now I live back in my rental again so it doesn't much matter
    Last edited by msommers; 03-22-2020 at 08:11 PM.
    Follow me on Instagram and Facebook!

  18. #18
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    Quote Originally Posted by msommers View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Total cost of everything (mortgage, condo fees, insurance, property taxes) = rental income + my $$ to cover it all. Even still I was positive when it came to tax time so the government is happy.
    Oh ok. This thread was about income tax so I was only talking about rental income net positive or loss.

    So with your situation you were negative cash flow but you were not doing rental loss on your taxes as your rental income > claimable expenses

  19. #19
    Join Date
    Oct 2014
    Location
    alberta
    Posts
    137
    Rep Power
    0

    Default

    You can write off lots of stuff for your main residence that you would use for your rental. Theres a lot of overlap with items that would be required for both. I'd write off "gifts" or "dinners" with your tenants.

    You should be chatting with whoever is doing your taxes as you should maximize every expense possible.

  20. #20
    Join Date
    Jul 2006
    Location
    Victoria Park
    My Ride
    '16 FoRS, '09 UZN215, '90 Z32, '15 Grom
    Posts
    3,606
    Rep Power
    18

    Default

    Quote Originally Posted by gwill View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You should be chatting with whoever is doing your taxes as you should maximize every expense possible.
    Lotta people use tax software... way cheaper.

Page 1 of 3 1 2 ... LastLast

Similar Threads

  1. FS: Engg Second Year Winter Some First Year

    By footballer in forum Campus Chat
    Replies: 1
    Latest Threads: 12-19-2007, 11:45 PM
  2. landlord refuses to pay for repair

    By Mikespecr1 in forum Society / Law / Current Events / Politics
    Replies: 20
    Latest Threads: 02-13-2007, 04:32 PM
  3. Can I finish first year... this year?

    By natejj in forum Campus Chat
    Replies: 15
    Latest Threads: 10-16-2006, 10:54 PM
  4. landlord problem

    By calgarygts in forum General
    Replies: 9
    Latest Threads: 03-21-2006, 05:50 PM
  5. Replies: 17
    Latest Threads: 11-14-2005, 11:21 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •