not rented because it it being renovated for sale. Can I deduct expenses mortgage, utilites ...

[Skygirl]

I don't have income on my rental because renovated for sale. Can I deduct expenses mortgage, utilities and insurance while it is being renovated?

[TurboTaxSusan]

As per this Canada Revenue Agency (CRA) page - Completing Form T776, Statement of Real Estate Rentals: Part 4 – Expenses: “You cannot claim the expenses for renting part of your property if you have no reasonable expectation of making a profit.”

So, if you didn’t have any tenants, and were not actively trying to rent the property (ex: advertising for tenants), then you can’t claim any expenses. If you rented your property for part of the year, you can still claim expenses for that period.

[Skygirl]

So, the expenses would be classified as soft cost and added to the Adjusted Cost Base of the tax year 2022 because the property was sold in 2022?