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A
Anonymous
February 18, 2023
Question

deduction of utility trailer purchase for rental property renovation

  • February 18, 2023
  • 1 reply
  • 0 views

Hi,

how and where to deduct a utility trailer purchased as a tool to renovate a rental property?

Furthermore, is it similar to motor vehicule expenses or should it be treated as a prepaid expense?

Furthermore still, once the renos are completed, the % use of the trailer related to the rental property goes way down. How can this be factored in if the trailer is kept vs sold?

trailer costs are:

-initial purchase

-accessories, repair, maintenance

-insurance

Any insights or CRA literature would be super appreciated.
thank you

    1 reply

    G
    guriraji
    February 18, 2023

    As per the Canada Revenue Agency(CRA), this would be considered a Capital expense and comes under the Capital cost allowance 10 class. You can refer to this CRA link for more detail: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/current-expense...

     

    Thank you for choosing TurboTax

      A
      Anonymous
      February 20, 2023

      Thank you, I was off track. I've found this guide T4036 Rental Income, which is taken me further down the road.
      Thanks again.

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