12 September 2012
Previously, I wrote about the two types of expenses you can claim on a rental property, current and capital expenses, and how to tell which is which.Now it’s time to get down to the nitty gritty and take a look at some of the specific rental property expenses you can and can’t deduct from your income tax. Today: capital expenses.
Capital Expenses You Can Deduct
These, as previously discussed, are expenses that you deduct the cost of over a period of years according to the Capital Cost Allowance Rules (T4036 – Rental Income).
Capital costs associated with buying your rental property can be deducted, such as:
- the purchase price of rental property; and
- legal fees and other costs connected with buying the property.
