As the home will be turned into a rental next year, you can’t claim the renovation expenses this year in your income tax return. However, If the renovations were significant and improved the value of the property, you can add the cost of the renovations to the cost of the property and claim them in the year you started renting it out. You can then claim Capital Cost Allowance (CCA) (or depreciation) on the total value as the Adjusted Cost Base (ACB) of the building.
For more information read the Canada Revenue Agency (CRA) article: Did you buy, build, sell or renovate a home in 2021? Here’s what you need to know , and TurboTax article: Can Rental Expenses from a Previous Year be Deducted?
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