Hi guys,

I have few questions about rental property which I bought in 2011.

This is brand new townhome which I bought around $260K in Aug 2011.
Price includes the partial HST with the condition that builder will apply and get the GST/HST credit. Total price with HST is $283K but we paid to builder only $260K.

Property rented to tenant within 5 days from closing with builder.

Questions:

1) For tax benefits, I think I can claim depriciation/CCA for the townhome. I also understand that land price can not claim into CCA. Lets assume the land price is $50K. Which price I should consider for CCA calculation? ($210K or $233K which includes HST)

2) What is the class of row townhome and how much depriciation I can claim?

3) I spent $3K for appliances. $1100 lawyer fee for closing. $300 bank fee for appraisal. Can I claim as an expense?

4) This is brand new home. So, we didn't get any bill for property tax yet. My other expeses are mortgage interest, interest on LOC used for downpayment and home insurance. What other expenses I can claim for tax credit?

5) I am managing myself. Can I claim some management expenses like car, phone etc?

Thanks in advance,

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Success is Never Ending and Failure is Never Final.

one more question.

Can I add Land Transfer Tax into home price and claim CCA? (I had paid about $2200 for LTT)

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Success is Never Ending and Failure is Never Final.

Should I claim CCA every year or at the end when selling the rental property?
What is the normal practice for investor and what do you suggest?

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Success is Never Ending and Failure is Never Final.

Quote:

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Originally posted by meitsme


Questions:

3) I spent $3K for appliances. $1100 lawyer fee for closing. $300 bank fee for appraisal. Can I claim as an expense?

4) This is brand new home. So, we didn't get any bill for property tax yet. My other expeses are mortgage interest, interest on LOC used for downpayment and home insurance. What other expenses I can claim for tax credit?

5) I am managing myself. Can I claim some management expenses like car, phone etc?

Thanks in advance,

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Thanks jigz787.

Yes, I was desperate to get reply.

There are many experts in our form but this is first time I have noticed that responses are very slow for all recent threads. It looks like everyone becomes more and more busy with their personal life.

Anyway, I will wait for experts response or comment on my questions.

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Success is Never Ending and Failure is Never Final.

Honestly, these questions are for expert CPA...and it is quite possible that very few, if any, woud have invested in real estate. Being said that please do share your experieces/views on rental properties. Such as how did you rent the property? did you use agent or self advertised? What all things did you do before renting out such as background check/credit check etc. Also how are you collecting the rent? And on top of it how did the tax details work out for you?
These will help tremendously for first time investors.

It depends on the type of house, size, location etc but it is always based on the construction cost to build, you cannot claim on land, demolition, developers profit, or bulk excavation.