Rental property improvements before resale? (tax/CCA/capital gains question)
Hey there - my family owns a rental property and the washer/dryer is kinda crapping out. They are also likely to sell this place in the coming months. Should they replace the washer/dryer before selling?
a.) If they do, can they claim the full amount of the replacement appliances as an expense? Or do they have to follow a CCA schedule and only claim some of it each year?
b.) How does that outstanding CCA balance get handled if they do sell the condo soon - perhaps within 2-6 months of purchasing the new appliances?
c.) From your experience, how much does a new washer/dryer typically affect the resale value? There's currently a smart washer/dryer combo on sale for about $1800. Do things like that typically pay for themselves in a sale, regardless of taxes?
Is there anything else you'd recommend my family doing to this place before it sells, that they can claim against their income, that will add value to the place? (I assume it's a good idea to take on expenses that also improve resale, as the expenses can be claimed in full, but the gains are only half taxed... make sense?) Decor is pretty modern already - likely to re-caulk the baths, and de-clutter the hell out of the place, but any other things, ideally that will help offset the income from capital gains when it comes to tax time?
Thanks in advance!
a.) If they do, can they claim the full amount of the replacement appliances as an expense? Or do they have to follow a CCA schedule and only claim some of it each year?
b.) How does that outstanding CCA balance get handled if they do sell the condo soon - perhaps within 2-6 months of purchasing the new appliances?
c.) From your experience, how much does a new washer/dryer typically affect the resale value? There's currently a smart washer/dryer combo on sale for about $1800. Do things like that typically pay for themselves in a sale, regardless of taxes?
Is there anything else you'd recommend my family doing to this place before it sells, that they can claim against their income, that will add value to the place? (I assume it's a good idea to take on expenses that also improve resale, as the expenses can be claimed in full, but the gains are only half taxed... make sense?) Decor is pretty modern already - likely to re-caulk the baths, and de-clutter the hell out of the place, but any other things, ideally that will help offset the income from capital gains when it comes to tax time?
Thanks in advance!