Quote:
Originally Posted by calf
Super Fraggle has it right about principal on the mortgage not being deductible.
So, you'll need to figure out the amount of rent received vs interest, condo fees, and any other related expenses on the property you have while renting it out (utilities, maintenance and repairs).
Whether you're earning or losing, it's a good idea to report it anyways. Losses can be offset against other sources of income to reduce your tax bill.
https://turbotax.intuit.ca/tips/clai...-property-6385
If you haven't yet, get an appraisal done to establish the value of your rental property on the date you started renting it out. When you sell you need to compare the sold price (less commissions and legal fees) to the value on that date, not when you bought it. The gain or loss you'd need to claim when you sell is your proceeds less that deemed value.
Hiring an accountant would help as well to ensure you have it all straight should an audit happen - worth the investment and troubles that could occur. |
Very comprehensive advice.
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