Generally speaking, expenses incurred to maintain or repair property are considered current expenditures and may be deducted in the calculation of income.
You may deduct from your rental income any current expenditures you incurred during the year for the purpose of earning such income.
Current expenditures include the following:
- advertising expenses incurred to attract tenants
- insurance premiums and property taxes respecting the rental property
- interest on loans taken out to purchase, maintain or improve the rental property
- borrowing costs or expenses incurred to obtain a mortgage loan or any other loan for the purpose of purchasing or improving rental property
- maintenance and repair costs incurred to restore a building to its normal value. (For example, the cost of replacing all the windows of a building, completely rebuilding its roof, etc.)
- expenses for landscaping the grounds around the rental property
- expenses incurred to rent out the land only
- the cost of bookkeeping services and fees paid to have books and accounting records audited
- legal fees (except those related to the purchase or sale of the property)
- salaries, wages and other remuneration paid to persons responsible for maintaining or operating the property
- the cost of heat, electricity and water
For further information, consult the brochure Individuals and Rental Income (IN-100-V).