Quote:
Originally Posted by bizaro86
You can only claim depreciation if you have a positive rental income, depreciation cannot be used to create or increase a loss on a rental property. So in this case, if he's already losing 150 a month, he probably will have a loss. (Granted mortgagep principal isn't tax deductible, but it's doubtful that is 150 a month initially.)
Property taxes are deductible on your statement of rental income.
Maintenance is deductible, but you have to be a bit careful with that one, since some things that you might consider maintenance the CRA considers as a capital improvement to the property. Direct replacements of things that have worn out are ok, but if you are upgrading to a "better" version, then its a capital expenditure that you have to put it into the correct CCA class and claim it over time.
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Ahhh, very cool. Depreciation can only bring you to "net zero" hey? What if, say, I made rental income the last 2 years but none this year. Could I go back and apply the depreciation to the past (noting that I forgot to claim it these past couple years)?