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Regardless of the reason why a person became a property owner of rental properties says Edmonton bookkeeping. They can claim that income on their personal tax return.

Even if this is how person is going to earn their living. Or if they have a rental property incidentally. Canada revenue agency considers rental income as personal income.

Even if a person is renting out rooms of their home, this is considered personal income. And therefore the expenses that they incur by keeping these properties. Our considered personal expenses on the property owners personal tax return.

However, Edmonton bookkeeping says Canada revenue agency does have one important caveat to keep in mind. If the property owner is charging for more than just rent of the space. And are including additional services for additional fees. Such as cleaning the house, maintaining the lawn were shoveling the walk. Or even providing meals if they are renting out rooms in their home.

Then this is no longer considered personal income. But considered a business instead. However, property owners will not have to worry about creating a corporation. Or filing their taxes as a proprietor. They simply need to fill out form called a T2125. And file that with their personal taxes.

There are a great deal of expenses that property owners can incur when maintaining their rental properties. And while most of these expenses can be deducted. Canada revenue agency does have rules surrounding them. And property owners should be aware of that. Before claiming them on their tax return.

Any property owners want to know if they are able to deduct utilities as an expense on their personal tax return. And Canada revenue agency will allow that. As long as they have specified that in their rental agreement. That the owners of the property will pay for the utilities.

They do not end up specifying that within their rental agreement. Or if they are not paying the utilities themselves. They are not allowed to use those as expenses on their personal tax return.

For people who are renting out a room or two in their home. Are also able to deduct utilities as an expense on their personal tax return.

However, it is important that they only claim a percentage such as a third of their utility expenses or quarter of them. Because if they claim over 50% of their utilities. They are going to lose their principal deduction on their tax return.

Rental property to do things like collect rent, supervise repairs or any type of property management. They will be able to claim the mileage and fuel. But not claim their rental property is far away from where they live.

By understanding all of the different exceptions that Canada revenue agency will have on rental income expenses. Being claimed on their personal tax return. Many property owners are best to hire Edmonton bookkeeping to do their tax return.

And then they do not have to keep in mind all of these exceptions. They know that their tax return will be done properly every single year.


Since rental income is considered personal income says Edmonton bookkeeping. Many property owners want to know what expenses they can claim on their personal tax return. And minimize the taxes that they end up paying.

There is a wide variety of rental property expenses that can be claimed. Though Canada revenue agency has a lot of rules and exceptions to follow.

A great example of this, is while off it expenses are considered a valid rental expense. That people can claim on their personal tax return. Edmonton bookkeeping says as long as they are not capital expenditures.

Canada revenue agency claims anything is a capital expenditure if it has a useful lifespan of longer than one year. Because of this, things such as pens, sticky notes and staples can be counted as an office expense. But things such as chairs, filing cabinets or even the stapler and calculator would not be considered claimable.

If a person is living far away from where their rental property is. Or if they have many different properties. They may end up having to hire staff to take care of the property. Either in the form of a management company, or a property manager. And even a maintenance person.

Edmonton bookkeeping says that the wages or fees for these workers can be deducted as a property expense on a person’s personal tax return.

However, if a property owner takes on this role. They are not allowed to claim their own time on their tax return as an expense. However, if they keep any of these personnel on on ongoing basis. They will be able to get benefits for these workers. And then claim the expense of the benefits on their tax return as well.

One of the necessary parts of being a property owner is conducting repairs and maintenance on the rental properties. However, Canada revenue agency also has rules about what can be deducted on personal tax return as well.

While cost of materials and labour can be deducted. What cannot be deducted is anything that is considered a capital cost by Canada revenue agency. This means that if a property owner needs replace flooring, or patch a hole in the roof for example. They can buy the materials to do those repairs. And pay for the workers to do those repairs. And have that as a claimable expense.

However, if a property owner had to replace something such as an appliance because it stopped working such as a fridge or a dishwasher. Those are considered capital costs and would not be considered a claimable expense.

By understanding the different expenses that can be claimed. Can help ensure that property owners know what they can claim and what they cannot. However, they might find it much easier simply to hire Edmonton bookkeeping to do their personal tax return on their behalf. So that they do not have to keep in mind these exceptions. And know that they can get their taxes done efficiently and accurately.