Hi,
how and where to deduct a utility trailer purchased as a tool to renovate a rental property?
Furthermore, is it similar to motor vehicule expenses or should it be treated as a prepaid expense?
Furthermore still, once the renos are completed, the % use of the trailer related to the rental property goes way down. How can this be factored in if the trailer is kept vs sold?
trailer costs are:
-initial purchase
-accessories, repair, maintenance
-insurance
Any insights or CRA literature would be super appreciated.
thank you
As per the Canada Revenue Agency(CRA), this would be considered a Capital expense and comes under the Capital cost allowance 10 class. You can refer to this CRA link for more detail: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/current-expense...
Thank you for choosing TurboTax
Thank you, I was off track. I've found this guide T4036 Rental Income, which is taken me further down the road.
Thanks again.