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actcdd1
New Member

Rental expenses before rented out

I bought a new condo in Toronto, I ha e the interim closing in Jun 2018 and the final closing in Dec 2018.  I bought it as an investment to earn rental; however, it can only be rented out after final closing, so I did not receive any rental income from this condo in 2018 yet.  For the 6 months, I have been paying occupancy fees, insurance for landlord, utilities and interests on loan; do I claim them as rental expenses on T776, carrying charges on investments, or capital expenses to adjusted cost base.  In addition, this is my second rental property.  Thanks.

2 Replies
warrencheswick
New Member

Rental expenses before rented out

They are certainly not capital expenses since they don't provide a lasting benefit. To me you should treat it as a rental expense, as if you had a property but had not found a renter.


If you're claiming a capital cost allowance on your properties, keep in mind that you cannot claim a cca to decrease your rental income to less than 0.

actcdd1
New Member

Rental expenses before rented out

Thank you; that means I shall be reporting with the form T776 for entering the expenses and 0 income?
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