On a rental property, if an owner pays a penalty for early renewal of a mortgage due to a lower interest rate, can one claim it as an expense?
In the event, the owner pays a penalty for renewing the mortgage due to a lower interest rate for the rental property, then as per the Conditions under subsection 18(9.1)you can claim it as an expense for the next return.
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On a rental property, if an owner pays a penalty for early renewal of a mortgage due to a lower interest rate, can one claim it as an expense?
Thanks for your help. The wording in the subsections are sometimes difficult to understand as I have to read it over several times. Does that mean I can only claim the interest expense on the 2022 return and not the 2021 return when the penalty occurred?
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