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Returning Member
posted Jan 31, 2022 4:43:05 PM

Capital expenses before starting renting

We started renting on Sep1 however a few months before we started renting (while it was our primary residency and we were still preparing this property for rent)  we made a few expenses. A new cabinets for the laundry room, new pot lights, painted the place, replaced a few faucets etc

Is it ok to claim these expenses even thought they were made before the date we started renting the place ?

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1 Replies
Moderator
Feb 1, 2022 12:48:16 PM

If these are capital expenses, then you can’t claim them as rental expenses on your tax return this year. You can include them in your adjusted cost base (ACB) when you sell or dispose of the property.

 

If you are claiming Capital Cost Allowance (CCA) on the property, you can enter your capital expenses as an addition to the CCA class of your building.

 

For more information on claiming Capital Cost Allowance (CCA) on a property, please see this TurboTax article: Dos and Don’ts: CCA for Rental Property Explained