Where do you deduct travel expenses for finding real estate properties to invest in?

[citybazooka]

I am an investor investing in real estate income properties. I travel a lot in order to search for investment properties. The real estate purchase is not always made, however. Nevertheless, I view it as a cost investment. Does CRA view it the same way? Then, how can I deduct these expenses? Thank you.

[Delphision · Accepted solution]

You can only deduct these expenses from income earned, which would be capital gains or perhaps rental income if you are investing in rental properties.  If you are flipping properties, you will have to keep a record of the expenses and report the total in the outlays and expenses column in schedule 3 to reduce any capital gains.  Keep all fuel, repairs and insurance receipts.  CRA is a bit touchy about real estate lately.

If you have purchased a rental property, you can deduct these expenses on your T776 Statement of Real Estate Rentals.