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Rental Income for the 2021 Canadian Tax Year

rental income

Rental Income: Deductible Expenses

Have you received government COVID-19 assistance for rental income or expenses such as the CEWS (Canada Emergency Wage Subsidy)? Make sure to include the amounts in your rental income or expenses.

We’ve also broken down the list of deductible expenses that you can claim against your rental income so keep reading to find out more.

Expenses You Can Deduct from Your Rental Income

Other Expenses

Rental Income: Non-Deductible Expenses

There are certain expenses that cannot be deducted and are listed here:

  • Land Transfer Taxes
    • Instead, add these amounts to the cost of the property.
  • Mortgage Principals
    • You cannot deduct repayments of principle on your mortgage or loan.
  • Penalties
    • Any penalties from your Notice of Assesment/Re-Assesment can’t be deducted.
  • Value of Your Own Labor

Find out more via the Canadian Government’s section on the taxation of rental income by clicking here or at the link below.

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