Where can I add rental property legal fees?

[ab562]

To clarify, the legal fees should be a CCA not an expense, as the fees were incurred for the rental purchase. Does the answer still apply?

[TurboTaxJudyToo · Accepted solution]

When you reach the form to fill out information related to the rental property, you would enter the legal fees under Professional fees.

Under the navigation tab, go to Income > Rental Properties. You will find Professional Fees in the Expenses section of the form.

See attached.

[ab562]

To clarify, the legal fees should be a CCA not an expense, as the fees were incurred for the rental purchase. Does the above still apply?

[TurboTaxJudyToo]

Legal fees incurred for the rental purchase would have to be proportionately allocated between land and building (as a ratio of their cost) and added to the cost. If you don't know what the proportion are, your real estate agent should be able to help you identify the cost of land and the cost of building.

If it's a new CCA asset, you would enter the the building+portion of legal fee in "Enter Additions" when you reach the T776 Capital Cost Allowance (CCA) section.

Note: land is not a depreciable asset and therefore no CCA can be claimed.

For more info (see Rental Properties) or an example of allocating legal fees between land and building:
https://turbotax.community.intuit.ca/questions/1190136-what-types-of-legal-fees-can-i-claim-as-deduc...

[ab562]

Thanks TurboTaxJudyToo. Great info and very detailed; I really appreciate your help!