HOW TO CALCULATE PERCENTAGE OF VEHICLE EXPENSES TOWARDS RENTAL PROPERTY INCOME

[engrshahid1]

I HAVE THREE RENTAL PROPERTIES - AND LAST YEAR I TRAVELED 300KMS IN TOTAL FOR ALL THREE FOR SHOWINGS. HOW DO I DISTRIBUTE COST WITH MY REGULAR ANNUAL TRAVEL OF 20,000 KMS. AND CAN I CLAIM SOME PORTION OF OIL CHANGE AND REPAIR AND MAITENCE OF THE VEHICLE AS WELL. I NEED HELP HOW TO CALCULATE THE PERCENTAGE FOR RENTAL PROPERTIES OF TOTAL EXPENSES.

[Delphision · Accepted solution]

A word before we begin, typing in all capital letters denotes shouting.  Try to remain calm.

You should do a separate T776 rental statement for each rental property.  That way you can correctly allocate all expenses.  Once you click on the first rental form, you will have the opportunity to add another rental at the bottom of the page.

You can put in the same total number of kilometres driven on each rental form, and then put in the exact number of kilometres driven specifically for each rental unit.  Put in the total expenses on each form, and the software will calculate the correct deduction for each rental unit.  You might have 70/20,000 and 120/20,000 and 110/20,000 for the third. The software will calculate your expenses as .004% and .01% and the third as .009%.

You can claim fuel, repairs, tires, insurance, but as you see, because of the low kilometres driven, you will not see a large deduction.  On the bright side, CRA will not find it significant either.