Can a special assessment be claimed against my rental income? If so, where is it applied? Can unclaimed portions be applied over future tax years?

I was assessed ~40k this year for roof repairs on our condo unit.  On average I claim approximately 6K per year as revenue after expenses and property taxes.  Using 6K as the example and provided that I am able to claim the special assessment, there would be 34K in the assessment that would be unclaimed.  Can I apply the remaining balance against future tax years?

Investors and rental owners

Thank you for your question.

I would advise you to contact Revenue Canada to verify if you can actually apply the remaining balance against future tax years.

 http://www.cra-arc.gc.ca/tx/bsnss/tpcs/rntl/crcp-eng.html

Contact CRA Phone: 1-800-959-8281




View solution in original post

Investors and rental owners

You can claim the full amount that you paid for the assessment in the tax year.  It will carry forward as a non-capital loss that you can apply against future taxes.  You will likely be required to show receipts for an amount that large.

aklassen60
Returning Member

Investors and rental owners

any idea where that would be in Turbotax

TurboTaxHeba
Intuit Alumni

Investors and rental owners

Special assessments of capital expenses should be claimed on the year they are paid. The roof repair cost is a capital expenditure that should be added to the building's depreciable value (class 1). Check these links on special assessment and tax treatment:

 

https://pocketsense.com/special-assessments-condo-ownership-25723.html

http://www.ourbigfatwallet.com/how-condo-special-assessments-are-treated-for-taxes/

 

Thank you

Heba

 

 

 

aklassen60
Returning Member

Investors and rental owners

still have no idea what line I would put the assessment on

Investors and rental owners

Thank you for choosing TurboTax.  Depending on the nature of the expense will determine how the transaction is treated. Expenses that bring the property back to its original condition can be expensed within the tax year. On the other hand, expenses that improve the property beyond its original state and improve its value should be claimed over several tax periods.

 

Therefore, we are not able to provide a specific line to address your question. I am recommending you consult with one of our tax experts who will guide you on the matter.

 

 Please use the link below to access their services:

 

https://turbotax.intuit.ca/personal-tax-software/live-catalogue.jsp