Real Estate

Are following considered rental property expenses while filing tax return?

  • Last Updated:
  • Nov 4th, 2019 2:37 pm
Jr. Member
Jan 22, 2015
195 posts
51 upvotes
Toronto

Are following considered rental property expenses while filing tax return?

Folks, I have a rental property and wondering if following expenses will be considered rental property expenses while filing a tax return?

1) purchased a new appliance for rental property because old one is broken.
2) replaced roof shingles.
3) flooring, drywall, etc.. have receipts .
4) Tools purchased for renovations because i did renovation for this rental property on my own.. have receipts.
2 replies
Member
User avatar
Aug 11, 2019
209 posts
221 upvotes
Toronto
Yes and no.

They are capital expenses, and would need to be amortized over the lifetime of the product.

If roofs shingles are expected to last 10 years and it costs $20,000. You can deduct $2k/yearly as an expense.

Same with appliances.

However, flooring and drywall you may be able to claim them as an expenses and deduct the full amount in the year.

I’m not an accountant or a tax professional, just a RE investor.
Full Time Realtor
GTA & Surrounding Areas
Deal Addict
Feb 19, 2019
2347 posts
4020 upvotes
Stouffville ON
Here is the link which explains what is expense what is capital asset.
https://www.canada.ca/en/revenue-agency ... enses.html

Appliances are class 8, amortization rate is 20%

Replacement of roof shingles is likely an expense,

Flooring and drywall, see cra, does it maintain or improve the property?

Tools, are they only for rental property? If the cost per tool is over $500 it will be class 8, if less you can probably expense it.
https://www.canada.ca/en/revenue-agency ... perty.html
Full Time and Full Service Realtor

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