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Many property owners may not realize until their first time doing personal tax return, that they can claim the expenses they incur from their rental properties says Edmonton bookkeeping. And this can be extremely beneficial in helping property owners keep their taxes down. Especially if they have many different rental properties.

However, Canada revenue agency has a lot of exceptions to all of the expenses that property owner can claim. Making an extremely important for property owners to either get informed very well prior to their personal tax return.

Or instead, hire and Edmonton bookkeeping company. That knows the expenses that can be used and what exceptions there are to the rule. So that a property owner does not have to worry about remembering what expenses they can use. And focus on maintaining that property.

One of the necessary parts of keeping rental properties is conducting repairs and maintenance to that property. And while Canada revenue agency allows supplies and the cost of labour to be claimed on personal tax returns. There are several different exceptions to this.

The first thing that property owners need to know, is that they cannot deduct capital costs on their personal tax return. Canada revenue agency considers anything that has a longer useful life of one year as a capital cost.

Therefore, if property owners are replacing such as fridges, stoves or washers and dryers. His are not going to be considered claimable expenses. Because they are capital costs.

Also, when they are conducting repairs and maintenance. It will not be considered a claimable expense if it extends the life of the rental property itself.

A great example of this, is where a property owner can have a hole in the roof patched. And have those expenses claimed on their personal taxes. They cannot put on a whole new roof. Because that will extend the life of the property.

However, property owners need to keep in mind that while they are not considered expenses that can be claimed on their personal tax return. Both capital expenditures and repairs and maintenance that will extend the life of the rental property. Will get added to the overall value of the building itself. Increasing the property owners assets.

So while it is not going to give them a direct tax benefits on their income tax return. It will be a benefit. And is therefore worthwhile doing as a landlord.

When they are conducting repairs and maintenance, all there able to deduct the materials and labour. The exception to this rule is if they are providing the labour themselves. They will not be able to claim their labour on their personal taxes.

There are many significant exceptions and rules on how property owners can claim the expenses that they incur managing and keeping their properties. Which is why it is often most beneficial for landlords to simply contact Edmonton bookkeeping.

And have them do the tax return on their behalf. So that landlords do not have to worry about what are the exceptions to their rules. And ensure that all of the claimable expenses are included.


Many property owners are surprised to find out that if they have rental properties, that the rental income is considered personal says Edmonton bookkeeping. And are therefore also surprised when they realize that they can claim the expenses they incur keeping those rental properties. On their personal tax return as well.

However, Edmonton bookkeeping cautions people in ensuring that they are only charging rent for the space and nothing else. Because if a landlord adds additional services for additional prices. that is no longer considered personal income. And is then considered a business.

A great example of this would be a landlord that charges additional fees for cleaning, or mowing the lawn or shoveling the sidewalk. Or if a person is renting out rooms in their home, and charge additional amounts for preparing meals for the people that are renting out the rooms.

If they do provide these additional services for additional fees. Then Canada revenue agency considers this business income. And will require property owners to fill out a form called a T2125. And fill that out and return it with their personal tax return.

Utilities is a very common question that property owners have for Edmonton bookkeeping. And while they are allowed to duct utilities such as gas, electricity and water. And even other services such as cable or a landline telephone. The rental agreement must specify that the property owner pays for the utilities.

This is true whether they are renting out a full unit. Or if they are renting out rooms in their home. A property owner might want to claim a percentage of their utilities.

However, Edmonton bookkeeping cautions property owners that are renting out rooms. Two only claim a percentage of their utilities. Such as a third or quarter of all of their utilities. But never over 50%. Because that could cause the homeowner to lose their principal deduction.

If a property owner even has to advertise in order to find a renter. Canada revenue agency will allow those advertising costs to be included as an expense on their personal tax return. And like all other expenses. There are exceptions to this rule. That says as long as the advertising channels are Canadian. They will be able to deduct those expenses.

Therefore, property owners can use newspaper, radio and even television as a deductible expense. Even social media and using a broker and finders fee. As long as they are looking for Canadian citizens. They will be able to claim this as an expense on their personal tax return.

By understanding all of the different expenses that they can claim. As well as what exceptions there are on those expenses. Can help property owners minimize their own personal taxes that they have to pay. And if they have any questions about the expenses.

They should contact their local Edmonton bookkeeping company. To help them navigate this situation. Or, can even do their taxes on their behalf. So that they do not end up making a costly mistake.