Question

Can I claim utilities, insurance,property taxes as a deduction against capital gains while the rental house was being prepared to be sold?

Forum|Forum|3 years ago
April 20, 2022
1 reply
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Yes, you can claim these expenses as capital expenses. According to this Canada Revenue Agency (CRA) page Capital expenses – Special situations, "If you make repairs to your property because you want to sell it, or you make the repairs as a condition of sale, the repairs are capital expenses. However, we consider the repairs to be current expenses if they would have been made anyway and the sale was negotiated during the course of the repairs or after their completion".

For more information on capital, expenses visit this page of the Canada Revenue Agency: - Current expenses or capital expenses

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