nova23_1
New Member

Where do I put car expenses for our rental house? And can we put the car payment as a deduction?

 

Investors and rental owners

Vehicle expenses for rental properties are only tax-deductible in certain situations. From CRA:

If you own one rental property - You can deduct reasonable motor vehicle expenses if you meet all the following conditions:

  • you receive income from only one rental property that is in the general area where you live;
  • you personally do part, or all, of the necessary repairs and maintenance on the property; and
  • you have motor vehicle expenses to transport tools and materials to the rental property.

If you own multiple properties, you may be able to claim additional expenses. Learn more here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form...

If you are eligible to claim motor vehicle expenses, enter these in the rental section of your return. On the Rental Profile screen, check the option for Auto Expenses, Interest, or Lease to have the screens appear. You cannot claim car loan payments but you can claim interest on the loan.

Whiswom2022
Returning Member

Investors and rental owners

I understand that I can claim vehicle expenses for my 1 rental unit but how do I calculate? Is it just for mileage?

Thanks!

 

Investors and rental owners

If a person has multiple income properties, do they need to add a car expense to each property in turbotax or they can only add the car on the first and the software will divide the costs amongst them ?

Investors and rental owners

Vehicle expenses for rental properties are only tax-deductible in certain situations.

 

 From CRA:

If you own one rental property - You can deduct reasonable motor vehicle expenses if you meet all the following conditions:

  • you receive income from only one rental property that is in the general area where you live;
  • you personally do part, or all, of the necessary repairs and maintenance on the property; and
  • you have motor vehicle expenses to transport tools and materials to the rental property.

If you own multiple properties, you may be able to claim additional expenses. Learn more here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form...

If you are eligible to claim motor vehicle expenses, enter these in the rental section of your return. On the Rental Profile screen, check the option for Auto Expenses, Interest, or Lease to have the screens appear. You cannot claim car loan payments but you can claim interest on the loan. 

 

** If you kept track of how many KM's you used on your vehicle for going to multiple properties and how much was used as personal- Then you would claim the car once- with all the KM's used for business. 

 

Thank you for choosing TurboTax.

Investors and rental owners

I see the following and it applies to us, BUT where does this go into Turbotax?  My search doesn't lead to anything.

 

From CRA:

If you own one rental property - You can deduct reasonable motor vehicle expenses if you meet all the following conditions:

  • you receive income from only one rental property that is in the general area where you live;
  • you personally do part, or all, of the necessary repairs and maintenance on the property; and
  • you have motor vehicle expenses to transport tools and materials to the rental property.

Investors and rental owners

@Jimfisher7272 Are you using TurboTax CD/Download or TurboTax Online?