TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Employee

Question

Captial Expenditures and Capital Gains on Rental Property

Forum|Forum|7 years ago
November 1, 2018
1 reply
0 views

If I put in new carpet and replace the roof of my rental property in 2018 and the property is sold in 2019, can I offset the carpet and roof expense against the capital gains tax in 2019?

Employee

No. Both the roof and the new carpet are capital assets that have to be listed as such in the Assets/Depreciation section. Now if "after" installing the carpet and new roof you did "NOT" rent out the property, you will still list the roof and carpet in the assets/depreciation section, and show them as 0% (zero percent) business use. The cost of these items will increase your cost basis on the property, thus reducing any taxable gain you may realize, or increasing any loss you may realize on the sale.