Real Estate

Is Tenant compensation tax deductible?

  • Last Updated:
  • Jul 6th, 2020 5:53 pm
[OP]
Jr. Member
Jan 22, 2015
170 posts
38 upvotes
Toronto

Is Tenant compensation tax deductible?

So i paid a tenat $500 compensation to move out and we signed a paper with the receipt.

My question is, is this $500 tax deductable or should i show it as a rental loss?
3 replies
Deal Addict
Nov 13, 2013
3518 posts
2129 upvotes
Ottawa
It’s an expense but wouldn’t you in effect be reducing the rent anyway so you don’t even need a separate receipt? This would make it easier especially if doing you own taxes online and avoiding any CRA questions.
[OP]
Jr. Member
Jan 22, 2015
170 posts
38 upvotes
Toronto
Its not a rent reduction.. $500 was paid for tenant to move out of the unit.


Is this expense tax dedutable? Or .. ?

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