Asked
We rented our suite for a few months last year, for the first time. We purchased a new microwave, washer and dryer, and blinds. If/when we claim that rental income on our taxes can we also claim those appliances and our garbage removal - and anything else?
Clint’s answer
There are two broad types of stand-alone expenses with rental properties.
1. Capital expenses 2. Operational Expenses.
Capital expenses are when one incurs cost through items that have a life-span of more than a year. The items you have listed are defined best as capital expenses and would fit into Class 8 of where one would depreciate them over time. Class 8 is a 20% depreciation.
Other items that one might deduct in operational expenses would be utility/garbage removal, annual insurance, mortgage interest, Hydro, Heat, maintenance and repair, property taxes, plus perhaps more...
Also, if you used your vehicle for the purposes of serving or servicing the suite you could potentially deduct some operational expenses for it, plus depreciation.
From Ask Clint: real questions from a Canadian public finance forum, answered by Clint Cole. Names are changed. This is general information, not advice for your situation, and rules and dollar figures may have changed since Clint answered. Terms