topic I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Can I claim anything even though I plant to move in in a year? in Investors & landlords

I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Can I claim anything even though I plant to move in in a year?

schryer9999 — Sat, 27 Mar 2021 14:09:59 GMT

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

ToddL99 — Sat, 27 Mar 2021 14:25:57 GMT

Yes you can claim a deduction for qualified rental expenses, even though you plan to move in at a later time.

You must report the rental income for the property and you can claim all the ordinary rental expenses (e.g. loan interest, insurance, depreciation, repairs & maintenance, management fees, etc.)

See What kinds of rental property expenses can I deduct? for a more complete list of deductible rental expenses.

See Where do I enter income and expenses from a rental property? for instructions on reporting rental income and expenses.

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

schryer9999 — Sat, 27 Mar 2021 14:36:12 GMT

Wow ... thanks for the quick reply ToddL99. What about the lawyer fees, can I claim all/part of that?

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

ToddL99 — Sat, 27 Mar 2021 14:45:12 GMT

Legal fees for purchasing the property are added to the cost basis of the property and are then depreciated over 27.5 years. If you only rent the property for one year, you would end up deducting 3.63% (1/27.5) of those legal fees as part of the 1st year's depreciation.

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

schryer9999 — Thu, 15 Apr 2021 17:14:04 GMT

Awesome ... thanks. One more question about this. I used $22,000 from my TFSA to help with the down payment of my property. Do I have to claim this amount on my 2020 taxes? If so, where?

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

ToddL99 — Thu, 15 Apr 2021 17:47:47 GMT

Please clarify - are you talking about a Canada tax return (TFSA is a Canadian version of US Roth account)?

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

schryer9999 — Thu, 15 Apr 2021 17:50:08 GMT

Yes, Canada. From what I have just been reading, TFSA's are "tax free" ... correct?

Re: I bought a home November 2020. Decided to rent it out for 1 year ... move in January 2022. Ca...

ToddL99 — Thu, 15 Apr 2021 17:57:11 GMT

This forum is for US tax returns so we cannot offer advice on Canadian tax issues.

See The Tax-Free Savings Account website from the Canadian government.